Consumer forum threatens legal action over proposed Electricity Act changes

The All Electricity Consumers Protection Forum is poised to challenge proposed amendments to Nigeria's Electricity Act 2023 in court, warning that the changes could dismantle the decentralization of the nation's power sector. The Senate's proposed revisions, according to the forum, threaten to strip states of their constitutional authority to manage their electricity markets.

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The attempt being made by the National Assembly to amend for the fourth time the Electricity Act 2023 is nothing but an attempt to rubbish the much-appreciated decentralisation of the electricity market and make it a multifaceted market, which is already taking shape with about 15 states adopting and beginning implementation of Section 63 of the Act as presently provided.

Adeola Samuel, the forum's National Coordinator, described the move as an attempt to reverse the progress made since the Electricity Act was signed into law in March 2023. He highlighted that approximately 15 states have already leveraged the Act to establish their own electricity markets. Restoring regulatory oversight to the Nigerian Electricity Regulatory Commission (NERC), he argued, would negate the autonomy granted to these states.

Samuel specifically pointed to Section 230(6) of the Act, which he stated explicitly removes NERC's regulatory authority over states that have established their own regulatory bodies. He cautioned that tampering with this provision would diminish states' legislative powers, making them subservient to NERC and undermining the decentralization efforts. The consumer advocate stressed that the Electricity Act, supported by constitutional amendments placing the power sector on the Concurrent Legislative List, empowers states to independently regulate and operate their electricity markets.

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On the completion of the transfer under subsections 2 and 3 of Section 63 of the Electricity Act 2023, as amended, whichever occurs later in time, the commission (NERC) shall’ have no further regulatory responsibility whatsoever for electricity market activities in its entirety within the state in which regulatory body responsibilities have been transferred.

The forum alleges that the National Assembly's proposed amendments aim to consolidate power back with NERC, rendering the celebrated decentralization a mere illusion. They view this as a significant setback for states seeking to manage their energy resources effectively.

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A cursory look at the intended amendment by the National Assembly, it’s obvious that their intention to take away the states’ concurrent power from the state assemblies and vest it in the hands of NERC once again will make the much-celebrated decentralisation a ruse.