States Are Empowered to Regulate Their Markets – Expert Reacts to NERC's Rejection of Enugu Regulator’s Electricity Tariff Reduction

 

An energy expert and Chief Executive Officer of Solarcentric, Adetunji Iromini has tackled the Nigerian Electricity Regulatory Commission (NERC), faulting its rejection of the Enugu Electricity Regulatory Commission’s reduction of Band A customers’ electricity tariff to N160 per kilowatt-hour from N209/kWh.

 

According to Iromini, states are empowered by the Electricity ACT 2023 to regulate their markets.

 

Speaking in an interview on Friday, he described NERC’s decision to move against EERC as dangerous.

 

Recall that in a notice on Thursday, NERC said state governments do not have jurisdiction over the national grid or over electric power stations established under federal laws or operating under licences it issued.

 

The NERC statement comes amid the controversy that followed EERC’s Multi-Year Tariff Order to MainPower, Enugu Electricity Distribution Company, mandating the Disco to slash its Band A tariff to N160/kWh.

 

EERC’s announcement had generated controversies with Discos and generation companies condemning the move.

 

The Minister of Power, Adebayo Adelabu, through his spokesman, Bolaji Tunji, reacting to the controversy, said the federal government will not recommend electricity subsidy removal for states.

 

The latest reaction was NERC’s rejection of EERC’s position on tariff reduction.

 

However, Iromini questioned whether NERC is not rendering the Electricity Act 2023 ineffective with its latest stance against EERC.

 

According to him, the Electricity Act 2023 is clear that NERC cannot take a counter position solely on the fact that state governments off-take power from the national grid.

 

NERC is no longer vested with central and overarching powers on regulation within independently regulated states,” he told DAILY POST on Friday.