Electricity Bill 2023 has been signed into law by President Bola Tinubu. This new act replaces the old 2005 Electricity and Power Sector Reform Act. The good news about the new bill is that it seeks to promote private-sector investments in the Nigerian power sector. This will de-monopolise electricity generation, transmission and distribution at the national level. This empowers States, companies, and individuals to generate, transmit and distribute electricity.
The Electricity Act establishes that NERC’s powers to regulate within Nigeria are without prejudice to the powers of the states to make laws and create electricity markets within those states and to regulate those markets.
It mandates how NERC is transition regulatory responsibilities from itself to state regulators when they are established. Until that happens, NERC will continue to regulate electricity business exclusively carried out in those states.
THis mean the new act allows some states that have created laws for their electricity markets can start full implementation. And other states will continue to be under the NERC until they pass their laws.
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