The Governor of Ogun State, Dapo Abiodun, has presented a proposal to the State House of Assembly for the development of a legal framework governing the electricity market in the state.
Aligning with the Electricity Act of 2023, this proposal aims to establish an autonomous electricity regulatory commission in the state, subject to the approval of the Nigerian Electricity Regulatory Commission.
It will also enable the state to engage in electricity generation, transmission, and distribution while issuing licenses to investors operating within the state.
The communication from Abiodun to the assembly was transmitted through the office of the Speaker, Oludaisi Elemide, and was presented during the plenary session on Tuesday.
The objective of this proposal is to enhance the processes of electricity generation, transmission, and distribution in the state, establish an operational electricity market, and define key bodies within the power sector, as well as enforce consumer rights and responsibilities, among other associated objectives.
The governor highlighted that this proposal is a direct response to the enactment of the Electricity Act of 2023, empowering states to establish a comprehensive legal and institutional structure for the power sector concerning areas such as generation, transmission, distribution, trading, and oversight of consumer rights and responsibilities.
He further communicated that the State Executive Council had ratified the proposal during its meeting on August 1.
“I am delighted to submit this proposal for your review and approval by the House of Assembly.
“This bill, sanctioned during the State Executive Council meeting on August 1, 2024, is driven by the adoption of the Electricity Act of 2023, granting states the authority to establish an exhaustive legal and institutional framework for the power sector covering generation, transmission, distribution, trading, and the enforcement of consumer rights and responsibilities, among other provisions,” stated the governor in the communication.
NewsNow disclosed that several other states have also sought authorization to establish their electricity markets, pending approval from the Nigerian Electricity Regulatory Commission.
States such as Enugu, Ondo, Ekiti, Imo, and Oyo have received the green light from the NERC to establish autonomous electricity regulatory bodies.