In a report released on Monday, PwC advised state governments to conduct meticulous planning and feasibility studies before implementing the 2023 Electricity Act to avoid futile efforts. The act, which entails substantial financial investments, requires thorough due diligence to ensure efficient resource allocation and project viability.
The report emphasized that merely enacting laws without a deep understanding of the local electricity market could lead to ineffective outcomes, urging states to perform proper assessments and due diligence for successful implementation. Standardizing electricity regulation across states is crucial to prevent market distortions and ensure fair competition.
Empowering state governments to participate in transmission and distribution areas previously reserved for the federal government, the Act outlines different roles for state Houses of Assembly. However, successful implementation necessitates significant support and collaboration with the Nigerian Electricity Regulatory Commission (NERC).
The Act encourages partnerships between state governments and utilities to foster sector development and improve service delivery. It aims to enhance access to electricity in remote communities, prioritizes renewable energy sources, and promotes accountability within the sector.
NERC retains its role as the apex regulator until individual states adopt the Electricity Act 2023. Offences and associated penalties are defined to promote accountability, while states are granted increased autonomy to enact laws strengthening their enforcement capabilities.
Mr. Razaq Obe, Commissioner for Energy and Mineral Resources in Ondo State, hailed the Act as a turning point, empowering states to shape their electricity landscape and demand accountability from Distribution Companies (DisCos). He emphasized the Act’s significance in addressing Nigeria’s electricity challenges and fostering economic growth and development.
As states navigate the complexities of electricity regulation and infrastructure development, strategic planning and collaboration with relevant stakeholders are paramount for effective implementation of the 2023 Electricity Act.
