Ogun plans law on electricity generation, distribution

Ogun State Governor, Dapo Abiodun, has sent a bill to the State House of Assembly seeking to establish a legal framework for the electricity market in the state.

The bill, which is in compliance with the Electricity Act 2023, will allow the state to have its independent electricity regulatory commission after the approval of the Nigerian Electricity Regulatory Commission.

It will also allow the state to generate, transmit and distribute electricity while granting licences to investors within the state.

Abiodun’s letter addressed to the assembly through the office of the Speaker, Oludaisi Elemide, was read at the plenary on Tuesday.

He said the bill seeks a law to improve electricity generation, transmission and distribution within the state, establish an electricity market and key power sector bodies, enforce consumer rights and obligations and for other connected purposes.

The governor noted that the bill is necessitated by the Passage of the Electricity Act 2023, which empowers states to provide a comprehensive legal and institutional framework for the power sector in the areas of generation, transmission, distribution, trading and enforcement of consumer rights and obligations amongst others.

He added that the bill was approved by the State Executive Council at its meeting on August 1.

“I am pleased to forward the bill through your good self, to the House of Assembly, for due consideration and passage into law.

“The bill, which was approved at the Executive Council meeting held on August 1 2024, is necessitated by the passage of the Electricity Act 2023, which empowers states to provide a comprehensive legal and institutional framework for the power sector in the areas of generation, transmission, distribution, trading and enforcement of consumer rights and obligations amongst others,” the governor said in the letter.

The According reports that more states have applied to set up their electricity markets and are awaiting the approval of the NERC.

States like Enugu, Ondo, Ekiti, Imo, and Oyo have gotten the NERC’s nod to have separate electricity regulatory bodies.