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Independent regulatory commissions

Electricity Act Amendment Bill 2025: A Delicate Balancing Act

Strategic Insights

— 1 min read

The Electricity Act 2025, introduced by Sen. Enyinnaya Abaribe, aims to amend the Electricity Act 2023. However, the bill is marred by potential conflicts and jurisdictional overlap between the Nigerian Electricity Regulatory Commission (NERC) and State Electricity Regulatory Commissions (SERCs). The proposed amendments raise concerns about NERC's "overriding regulatory oversight," conflicting powers over tariff design and implementation, and the potential for regulatory disputes.

Key Takeaways:

  • The Electricity Act Amendment Bill 2025 aims to amend the Electricity Act 2023, but it creates potential conflicts and jurisdictional overlap between NERC and SERCs.
  • Section 230C(1)(b) states that intra-state electricity operations relying on the national grid system remain subject to NERC's "overriding regulatory oversight."
  • The bill uses vague and ambiguous terminologies, including "reliance on the national grid system," "operational codes," and "intra-state electricity activity."
  • Conflicting powers over tariff design and implementation could lead to regulatory disputes between NERC and SERCs.
  • The bill creates ambiguity around the Forum of Electricity Regulators (FERs) and its appellate jurisdiction.
  • Exclusive federal jurisdiction over technical and safety standards enforcement could lead to direct conflict between state and federal inspectorate officials.
  • The amendment bill seeks to roll back the 5th Alteration of the 1999 Constitution by relating intra-state electricity activities to the national grid system.
  • The bill's drafters aim to restrict activities in state electricity markets to solely distribution and retailing of electricity.

Statistics:

  • 112 Nigerians lost their lives in the Nigerian electricity sector in 2024, according to data released by the NERC.
  • The proposed amendment bill seeks to alter the Electricity Act 2023 to accommodate emerging issues in the industry.
  • The bill's core objectives include enhancing policy and regulatory coordination, strengthening sectoral financing, protecting critical infrastructure, and fostering industrial relations.

Sources:

  • "Electricity Act Amendment Bill 2025" ( Senate of the Federal Republic of Nigeria)
  • Odion Omonfoman, "Electricity Act Amendment Bill 2025: A Delicate Balancing Act" (original article)
  • "5th Alteration of the 1999 Constitution" ( Constitution of the Federal Republic of Nigeria )
  • "NERC Annual Report 2024" ( Nigerian Electricity Regulatory Commission)
  • "Nigeria Governors Forum Report" (Nigeria Governors Forum)

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