Former Acting Chairman/ CEO of the Nigerian Electricity Regulatory Commission (NERC), Dr. Tony Akah, has emphasized the need for smooth implementation of the 2023 revised Electricity Act.
His reaction follows the ongoing rift between state governments and electricity distribution companies (Discos) over who has the authority to regulate electricity tariffs in Nigeria.
Join our WhatsApp ChannelAccording to Dr Akah, the key to resolving the dispute lies in the clear delineation of roles between NERC and state commissions. He called on all parties involved in the tariff issue to join hands with the commission to build a better and more robust power sector, noting that consultation could solve many problems.
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Meanwhile NERC has reportedly stepped in to mediate the ongoing dispute. The move comes after the Enugu Electricity Regulatory Commission announced a new tariff regime, which was met with resistance from power distribution companies.
States have aegued that the Electricity Act 2023 empowers them to regulate their respective power markets, including setting tariffs. The Forum of Commissioners for Power and Energy in Nigeria insists that states have the power to design tariffs as far as distribution is concerned.
The DisCos, however, contend that states lack the power to fix prices for cross-border electricity, citing the Act’s provisions. Speaking under the auspices of the Association of Nigerian Electricity Distributors (ANED), the DisCos argued that states had no powers to put a price on electricity drawn from the national grid.
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The Dispute
The crisis began when the Enugu Electricity Regulatory Commission announced a new tariff regime, slashing the Band A tariff from N209 per kilowatt-hour to N160/kWh. However, power distribution companies, including MainPower Electricity Distribution Limited, resisted the move, arguing that states lack the authority to fix prices for cross-border electricity.
NERC has, therefore, invited all stakeholders, including state regulatory commissions, Discos, and other industry players, to a meeting scheduled for next week in Lagos. The outcome of the meeting will be crucial in determining the future of electricity tariff regulation in Nigeria.
According to The Punch, expert Adetunji Iromini has faulted NERC’s rejection of the Enugu regulator’s electricity tariff reduction, describing it as “dangerous.” According to Iromini, the Electricity Act 2023 empowers states to regulate their markets, and NERC cannot take a counter position solely based on the fact that state governments off-take power from th e national grid.
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