•Power transmission line
State governments today demanded clarity from the federal government regarding equity ownership in the eleven privatised electricity distribution companies (DisCos) and the Niger Delta Power Holding Company (NDPHC).
They also called for greater transparency and accountability in the administration of power sector subsidies by the federal government, reports Vanguard.
Speaking during a meeting with the Minister of Power, Chief Adebayo Adelabu, in Abuja, the states emphasised that the Constitution and the Electricity Act empower them to determine electricity tariffs payable by consumers at the subnational level.
Chairman of the Forum of Commissioners for Power and Energy in Nigeria, Prince Eka Williams, stated that while the states are not in conflict with the Federal Government over electricity market administration, they remain committed to ensuring value for money for electricity consumers.
He said: “This brings me to pressing matters that require urgent attention. States have consistently championed initiatives aimed at the successful implementation of the Electricity Act. Key among these is the lack of clarity on issues of state equity in DisCos and NDPHC.
“Despite repeated calls and engagements, there has been no meaningful progress from NERC or other relevant agencies addressing the actualization of state equity in these crucial entities. Furthermore, we need to clear the states’ position on the proposed amendment to the Electricity Act.
“The states remain firm. We cannot support an amendment that undermines the spirit or intents of the original Act. Particularly those that seek to centralize power that are now devolved. We believe these proposed amendments run counter to the progress we are planning to achieve. It must also address issues of subsidy management and fiscal transparency in the power sector.
“The new subsidy regime is being implemented without clarity on its implications for state-licensed markets and without prior consultation. These and other issues will be raised in the course of our discussion. Looking ahead, the conference is committed to working collaboratively with the Ministry and all stakeholders within the power sector to ensure that the NESI thrives. We need a framework that respects our traditional rules and ensures that all stakeholders are heard and involved”, he said.
But doubling down on its decision to reduce electricity tariff for Band-A customers, the Enugu State Government said the N160/kWh tariff is cost reflective.
The state had in a new tariff for customers in the state reduced Band-A tariff from N209/kWh set by the Nigerian Electricity Regulatory Commission (NERC).
The Special Adviser to the Enugu State Governor on Power, Mr. Joe Aneke said the reduction was arrived at using data submitted by the MainPower Electricity Distribution Limited, the Enugu DisCo’s subsidiary in charge of supplying power to Enugu State.
He insisted that while NERC regulates generation and transmission, states have been empowered to regulate distribution, adding that the new tariff did not interfere with the wholesale cost of electricity.
Speaking at the opening of the meeting, the Minister of Power, Chief Adebayo Adelabu harped on the need for the States to collaborate with the Federal Government to ensure that the electricity market was not distorted.
He said: “While we fully respect the constitutional rights of States to determine how their electricity markets should evolve, it is equally critical to involve the Federal Government, particularly as the custodian of the national grid and wholesale market to ensure that market developments at the State level do not inadvertently disrupt the stability and efficiency of the entire sector.
“The national electricity market is an interconnected system that depends on coordinated generation, transmission, and distribution operations across state borders. Any misalignment or uncoordinated action at the subnational level can create technical, commercial, or regulatory conflicts that weaken grid stability, disrupt power supply to neighbouring States, and undermine investor confidence.
“By working together and ensuring alignment, we can safeguard the integrity of the national grid, optimize resources, and provide reliable and affordable electricity to all Nigerians, regardless of where they live.”
