The Nigerian Electricity Regulatory Commission, NERC, has warned
electricity distribution companies, DISCOS, to treat state regulators with
respect.
NERC Vice Chairman, Musiliu Oseni, stated this at the commission’s
quarterly stakeholders meeting, which ended in Lagos on Tuesday.
Power distributors had repeatedly countered state electricity regulatory
commissions on matters of tariffs, a development that has pitched the
two groups at opposing ends.
Oseni urged the Discos to strengthen their relationships with state
regulators, underscoring the need for open communication,
transparency, accountability, and mutual respect.
He, however urged State Electricity Regulatory Commissions to advance
their electricity markets instead of relying on Federal Government
subsidies.
Recall that the crisis between states and electricity distribution
companies has continued to degenerate over who has the power to fix
electricity tariffs.
Energy commissioners of state governments have repeatedly insisted
that the Electricity Act, 2023 has empowered state governments to
regulate their respective power markets.
But power distribution companies insisted that, although the Act enabled
the states to regulate their power markets, the state governments lack
the power to put a price on cross-border electricity.
As a result of this, neither the states nor the Discos are ready to shift
ground over who has the authority to regulate electricity tariffs.
