Enugu Sets Up Electricity Market

Enugu State Government passes a bill to set up its electricity market, following the 2023 Electricity Act. This move is expected to attract investments, enhance service delivery, and promote competition within the electricity market.

Enugu State Government has passed a bill to create its own electricity market, a significant move spurred by the 2023 Electricity Act.

This Act grants Nigerian states the authority to formulate their electricity markets. Profound progress.

Prof. Chidiebere Onyia, the Secretary to the Enugu State Government, announced this development at the Enugu State Investment Roundtable on September 1, 2023.

Creating state-level electricity markets, as outlined by Prof. Onyia, fuels Enugu State’s ability to draw investments crucial for advancing its power generation, transmission, and distribution capacities.

This action is vital for the state’s economic progress, as a dependable electricity supply underpins business growth and citizen welfare.

The 2023 Electricity Act

The 2023 Electricity Act, passed by President Bola Ahmed Tinubu in June 2023, de-monopolizes Nigeria’s electricity generation, transmission, and distribution at the national level.

This crucial legislation empowers states, businesses, and individuals to produce, transmit, and distribute electricity.

Yet, it bars cross-state and international power distribution. Implications of this Act.

Implications of the Act

Odion Omonfoman, the Chief Executive Officer of New Hampshire Capital Limited, in an interview with Nairametrics, noted that the Act requires all states across Nigeria to establish their own electricity laws to govern the sector effectively.

This advancement should enhance governance, efficiency, and the overall performance of Nigeria’s electricity sector.

Lagos, Edo, Ondo, and Kaduna states have either implemented or are in the process of developing their electricity laws.

Through enacting their electricity regulations, states can bolster service provision and foster competitiveness in the power market.

Amplified investments will offer consumers the option to stick with the national grid or select a grid operator licensed by the state.

The NERC Context

During a Stakeholder Workshop in July 2023, organized by the Nigerian Electricity Regulatory Commission (NERC), Musiliu Oseni, the Vice Chairman/Commissioner responsible for Market, Competition, and Rates at the Commission, addressed the critical decisions and implications faced by states when implementing the Act.

He emphasized the need for targeted methods to spur growth in the Nigerian Electricity Supply Industry (NESI). Growth Strategies.

Embrace Collaboration: States should cultivate a collaborative mindset.

He emphasized the need for targeted methods to spur growth in the Nigerian Electricity Supply Industry (NESI).

Growth Strategies.

Enhance Quality: Consistently providing high-quality power will not only meet consumer expectations but also attract investments and industrial development.

Prioritize Customer Satisfaction: Satisfied customers are more likely to support and engage positively with the NESI, leading to increased revenue and overall industry growth.

Improve Liquidity: Efforts should be directed towards improving liquidity within the electricity market. Sufficient financial resources are essential for industry sustenance and expansion.

Through these strategies, states can fuel NESI growth and development, culminating in a more efficient, reliable, and customer-focused electrical grid.

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