Oyo State has made history by becoming the first state in Nigeria to pass a law establishing an Energy Regulatory Commission to oversee electricity generation, transmission, and distribution within its boundaries. The law, passed by the Oyo State House of Assembly on October 26, 2023, aligns with the recent constitutional amendment that confers states constitutional powers to make laws on electricity matters, including areas covered by the national grid.
The law aims to promote the development of the power sector in Oyo State, enhance access to electricity for the people, and attract private sector investment and innovation. The law also establishes an Energy Regulatory Commission to regulate all energy licensing matters, such as the application, grant, renewal, amendment, transfer, suspension, cancellation, and refusal of licenses for various electricity-related activities.
According to the law, the state may collaborate with those licensed by the Nigeria Electricity Regulatory Commission (NERC) to invest and increase the capacity of such transmission licensee’s transmission lines, transmission substations, or other related infrastructure within the state. The law also stipulates that the transmission licensee licensed by the NERC shall continue to operate and manage their existing transmission lines and transmission substations in the state or relating to the state, provided that such transmission licensee shall not be involved in any other licensed activity within the state without a valid license issued by the commission.
The law also empowers a trading licensee to provide quality service to electricity consumers and ensure its transactions are transparent, timely, and effective. The law also requires a trading licensee to publicly make its rates, charges, and other terms and conditions available and to promote energy efficiency and demand-side management practices by customers.
The law also imposes penalties for anyone who willfully damages any electrical installations, appliances, or meters in the state or unlawfully taps off, diverts, or takes electricity from them. Such offenders are liable on conviction to a fine of N5 million. The law also penalizes anyone undertaking any electrical construction or installation without obtaining a right-of-way permit from the state government. Such offenders are liable to bear the cost of removing such construction or installation in addition to a fine of not less than N5 million or imprisonment for 18 months or both.
Many stakeholders have hailed the passage of the law as a bold and progressive step that will boost the power sector in Oyo State and improve the quality of life of its residents. The law is also expected to serve as a model for other states in Nigeria that are seeking to leverage the constitutional amendment to develop their own power sectors.
The Governor of Oyo State, Seyi Makinde, who had earlier presented the bill to the House of Assembly, congratulated the lawmakers for passing it and expressed his commitment to ensuring its implementation. He said that his administration would prioritize education, infrastructure, and electricity in his second term.
The Speaker of the Oyo State House of Assembly, Debo Ogundoyin, who presided over the plenary session that passed the law, commended his colleagues for their diligence and cooperation. He said the law was a landmark achievement that would usher in a new era of sustainable development in Oyo State.
Source: Oyo Truth
