The Managing Director/CEO of New Hampshire Capital, Odion Omonfoman, has said that the minister of power, Adebayo Adelabu’s statement on suspending the electricity regulatory oversight of states conflicts with the provisions of the Electricity Act 2023.
Omonfoman, who is an energy expert, stressed that the transfer of regulatory oversight from the Nigerian Electricity Regulatory Commission (NERC) to the State Electricity Regulatory Commission (SERC) is a constitutional provision.
Adelabu, during the 8th edition of the Africa Energy Market Place (AEMP) Nigeria, in Abuja, said the process of transfer of regulatory oversight from NERC to states has now been halted. According to him, this is due to the imperative to ensure that state governments and stakeholders in the power sector properly understand the requirements for operating an electricity market.
The minister’s declaration came after NERC transferred regulatory powers to Ekiti, Enugu, and Ondo states. However, Omonfoman, including other energy sector experts, has flagged the statement as “inappropriate.”
Omonfoman further stressed that the condition for the constitutional entitlement to electricity regulation within states is for the state to meet the conditions/requirements of section 230(2) of the 2023 Electricity Act.
On his LinkedIn page, he stated, “I hope Hon. Minister Bayo Adelabu was misquoted here by the media. The statement, if true, is in conflict with the 1999 Constitution (as amended) and the provisions of the Electricity Act, 2023.
“Any State that meets the requirement of section 230(2) of the Electricity Act is constitutionally entitled to regulate electricity within its territories. NERC is also statutorily required by the Electricity Act to effect the full transition and transfer of regulatory oversight to the State Electricity Regulatory Authority within 6 months of receiving a notice from a State.
“One last thing: it is NOT within the power of the Federal Government to grant States regulatory autonomy over their electricity markets. IT IS A CONSTITUTIONAL PROVISION.”
In his comment on the issue, Francis Emechete, an energy lawyer, stated that the Electricity Act 2023 created NERC as an independent body, giving the commission a constitutional license to transfer regulatory oversight to states.
He quizzed, “Does the Minister have the powers to “halt” the transfer of regulatory powers to states, which in this case is a purely constitutional matter? What powers has the Minister to “halt” NERC’s exercise of the provision of the EA? All eyes on the NESI.”