The Imo State House of Assembly has officially passed the State Electrical Bill into law, a piece of legislation that has been under consideration for some time. This bill, which is aimed at improving electricity access and regulation within the state, was passed after extensive discussions and deliberations by members of the Assembly.
Kanayo Onyemaechi, a member of the Assembly representing Owerri West Constituency and the Majority Leader, was the chief sponsor of the bill. Speaking to journalists after the bill’s passage, Onyemaechi explained that the bill was modeled after the Federal Electricity Act of 2023, which gives states the authority to establish legal frameworks for licensing and regulating electricity agencies operating within their jurisdiction.
Onyemaechi highlighted that the Nigerian electricity sector is currently undergoing a significant transformation, driven by the enactment of the Nigerian Electricity Act of 2023. According to him, this new legislation marks a pivotal shift in the industry, fostering increased competition and innovation across the entire electricity value chain.
Under the new Act, states are empowered to issue licenses for mini-grids and power plants, decentralizing the process and allowing for more localized decision-making regarding electricity generation and distribution. The legislation also encourages the use of renewable energy sources, which is seen as a vital step toward achieving a more sustainable and resilient electricity system in the country.
In the case of Imo State, the newly passed bill seeks to improve the generation, transmission, and distribution of electricity. It establishes a regulatory framework for the state’s electricity market, aimed at ensuring a reliable and sustainable power supply. The bill is designed to address the specific needs of Imo’s residents and protect the interests of consumers by creating a local electricity market that will facilitate improved access to electricity.
Further elaborating on the bill, Onyemaechi emphasized that the key provisions include the establishment of a state-run electricity market, which will provide better access to electricity for the people of Imo. He also pointed out that the bill sets up a regulatory framework to guarantee the consistent supply of electricity, while also safeguarding consumer interests.
With the passage of the bill, Onyemaechi stressed that the residents of Imo can now expect benefits similar to those outlined in the Federal Electricity Act of 2023. These include the ability for the state government to craft electricity policies tailored to its unique needs, improving both the quality and accessibility of services. Furthermore, the bill will help foster a more competitive electricity market, promoting innovation that could result in improved services and reduced costs for consumers. The bill also encourages the adoption of renewable energy sources, which, according to Onyemaechi, will lead to cleaner, more sustainable power generation and a healthier environment.
Raymond Ikpedikwa, an energy expert, commented on the significance of the new law. He recalled that in April 2024, Nigeria made a major stride toward localizing electricity regulation when the Nigerian Electricity Regulatory Commission (NERC) transferred regulatory authority over the electricity markets of Enugu and Ekiti States to their respective state regulatory bodies, the Enugu State Electricity Regulatory Commission (EERC) and the Ekiti State Electricity Regulatory Commission (EKERC). Ikpedikwa noted that these states now have the power to manage and regulate their electricity sectors locally, creating what he described as a “tailor-made” approach that can more effectively address the unique needs of local consumers.
Ikpedikwa further stated that moving away from centralized regulation offers the potential for a more dynamic and responsive electricity market. Localized regulators can implement innovative solutions, quickly adapt to market changes, and collaborate with various stakeholders to drive sustainable growth in their respective states. He predicted that Imo State is poised to follow in the footsteps of Enugu and Ekiti, effectively taking charge of its electricity sector and benefiting from more localized, state-level regulation.
However, Ikpedikwa also cautioned that for the law to succeed, it is crucial that the necessary logistics and infrastructure be put in place to ensure its effective implementation. Now that the bill has passed, he emphasized the importance of ensuring that the regulatory framework is fully operational to achieve the desired outcomes for Imo State’s electricity sector.
