The Digest:
State governments are accusing the Federal Government of reversing the progress made in the power sector's decentralisation, following proposed amendments to the Electricity Act. Tensions between both levels of government rose over state autonomy and tariff regulations.
Key Points:
- States warn that proposed amendments could erode the autonomy granted under the Electricity Act, 2023.
- A dispute ignited by Enugu's decision to lower electricity tariffs, rejected by the Federal Government.
- NERC maintains that states lack jurisdiction over the national grid and federal power stations.
- States demand respect for subnational powers over tariffs, licensing, and distribution.
- Cross River’s Power Commissioner criticizes stalled agreements and a lack of coordination.
- States call for clearer frameworks and increased collaboration with NERC and the federal government.
- Minister Adelabu stresses the need for synergy to prevent regulatory chaos and maintain grid stability.
The ongoing conflict highlights the delicate balance between federal and state powers in the power sector. Both parties must collaborate to ensure progress without jeopardizing stability or investor confidence.
Sources: Punch
