State governments deny backtracking on electricity market decentralisation

By John Alechenu

Commissioners of Power and Energy across the 36 states of the federation, under the aegis of the Forum of Commissioners for Power and Energy (FOCPEN), have dismissed claims that they are backpedalling from their commitment to ensure a decentralised and reliable power supply nationwide.

The forum said no state has retreated from reform; rather, more states are passing laws, establishing commissions, and assuming regulatory powers every quarter.
It stated that since the passage of the Electricity Act, 23 states have passed laws to establish their electricity markets, with more states joining.

Adding that 14 states now have formal NERC transfers of regulatory oversight.

This was contained in a statement jointly signed by its chairman, Prince Eka Williams, who is also commissioner of Power and Renewable Energy, Cross River State; and Ag. secretary, Engr. Mohammed Ihiezue Abdulmutalib, who is commissioner of Rural and Energy Development, Kogi State.

The statement was issued in response to speculations that subnational governments have reversed course on power sector reforms following the enactment of the Electricity Act.

FOCPEN described the speculations, which have gained traction in a section of the media, as “erroneous and inaccurate,” stating that it does not reflect the true position and progress so far made in advancing electricity market reforms across Nigeria.

The group noted that members and their principals, who are governors of the 36 states, have remained committed to the course and have been actively engaging with the opportunities provided under the Electricity Act.

Towards this end, it noted, the processes of domesticating the law are at different stages of legislation, regulatory formation, and market design.

While recounting progress so far made across states, FOCPEN said, “Since the passage of the Electricity Act: Twenty-three (23) states have already passed enabling laws to establish their electricity markets, with more states joining.

“14 States now have formal NERC transfers of regulatory oversight. More states are joining the reform journey each month—recent examples include formal transfer processes for Bayelsa and Nasarawa.

“Also in its just-concluded Energy Summit, Akwa Ibom State unveiled its state market blueprint, signaling strong intent to develop its state electricity market.

“Other states are similarly planning or hosting stakeholder engagements, workshops, and policy dialogues that will accelerate the localisation of electricity governance.

“Regulatory commissions have been constituted in pioneering states, with others at advanced stages of setting up theirs, showing that the state markets are operational, not theoretical.

“States across all regions are actively exploring frameworks for independent regulation, tariff orders, and market design.”

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