Boundaries Of Federal And State Governments In Electricity Regulations

The enactment of the Constitution of the Federal Republic of Nigeria (CFRN),1999 (Fifth Alteration) (No.17) Act,2023 and the Electricity Act, 2023 which paved mode for afloat devolution of intra-state energy regulatory powers to authorities governments person stirred up a batch of contestations amongst stakeholders than ever imagined.

The bony of contention appears rooted successful the misconception amongst stakeholders regarding the grade of the regulatory powers disposable to authorities governments nether the existent multitier regulatory authorities recognized by the CFRN (Fifth Alteration) (No.17) Act,2023 and the EA,2023. One of specified misconceptions which has gained traction successful the media is that the caller law alteration and the consequent enactment of the EA, 2023 person for the archetypal clip devolved energy regulatory powers to sub-nationals to the grade that the recently established State Electricity Regulatory Commissions (SERCs) tin present modulate ( successful each its ramifications), energy generation, transmission and organisation activities wrong authorities boundaries to the exclusion of the Nigerian Electricity Regulatory Commission ( NERC), which hitherto regulated energy activities nationwide.

Relatedly, determination are those who are of the beardown sentiment that nether the existent ineligible regime, powerfulness plants located wrong authorities boundaries should autumn nether the overriding regulatory powers of SERCs including afloat takeover and power of the 8 (8) powerfulness plants present operated by the 8 successor generating companies (GENCOs) that emerged aft the decision of privatization successful 2013.

It has besides been argued that the EA,2023, is an iniquitous and needless portion of authorities which has abolished cross-subsidization and provided the model for promotion of vigor inequalities particularly considering the disproportionate organisation of energy infrastructure betwixt the bluish and confederate states of Nigeria.

The instant involution seeks to disambiguate the jurisdictional boundaries of the SERCs and NERC nether the existent ineligible authorities and shed airy connected caller debates.

To afloat recognize the jurisdictional confines of the 2 levels of governments regarding energy regularisation successful Nigeria, it indispensable beryllium stated that the Constitution of the Federal Republic of Nigeria, 1999 (as altered) and the Electricity Act, 2023 represent the superior sources of energy instrumentality successful Nigeria currently. Furthermore, determination are different national enactments that indispensable beryllium taken into information erstwhile discussing the regulatory powers of the 2 levels of government.

These see the Standard Organization of Nigeria (Establishment)Act which is the wide authorities connected nationalist method standards; Federal Competition and Consumer Protection Commission Act which is the wide authorities connected competition, user protection, and anti-trust; Climate Change Act ,2021 which deals with clime alteration mitigation and adaptation bearing successful caput Nigeria’s planetary committedness to clime change; Water Resources Act, CAP W2, Laws of the Federation of Nigeria (LFN) ,2004 which regulates the planning, improvement and usage of h2o resources that affects much than 1 state; National Environmental Standards and Regulations Enforcement Agency (Establishment) Act; and the Environmental Impact Assessment Act, CAP.E12, LFN,2004 which are applicable successful the country of biology interaction of energy projects oregon related activities successful the powerfulness sector. Additionally, licensed energy entities operating nether the regulatory purview of authorities regulators are expected to comply with extant national enactments connected institution income tax, idiosyncratic income taxation and worth added taxation etc .

The above, amongst others represent the gamut of laws that are captious successful disambiguating the legislative and regulatory competences of the 2 levels of authorities successful Nigeria connected the contented of energy and should beryllium good understood by cardinal players successful the powerfulness sector.

With respect to the powers of the 2 levels of authorities nether the Constitution, 1 indispensable callback that anterior to 1999, the concern of energy generation, transmission and organisation was for decades nether the sole power of the defunct National Electric Power Authority (NEPA) arsenic a vertically integrated monopoly.

The defunct NEPA operated a redial nationalist grid strategy comprising of on-grid powerfulness plants, precocious voltage transmission lines and organisation lines done which energy albeit epileptically was supplied to Nigerian nationwide without respect to geographic boundaries of authorities governments.

This integrated precocious voltage strategy of interconnected procreation plants, transmission lines, substations and related facilities crisscrossing states of the Federation and beyond that was operated by NEPA arsenic a unified web is what is fundamentally referred to arsenic the nationalist grid system.

However, pursuing the promulgation of...