Twelve out of 36 states have applied to the Federal Government to set up their state Electricity Regulatory Commission, Nigerian Tribune has learnt.

According to a source from one of the agencies of the Federal Government, 24 states, including Abuja, the Federal Capital Territory, are yet to apply.

Nigerian Tribune gathered that the Nigerian Electricity Regulation Commission (NERC) is expecting other states’ applications, following the new Electricity Act signed by President Bola Tinubu, which empowers states, companies and individuals to generate, transmit and distribute electricity.

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If these applications sail through, each state has the liberty to set up its electricity regulation commission that will take over the activity of NERC in that state, except for existing assets.

The new law grants states the constitutional authority to enact laws that allow them to generate, distribute and transport electricity within its boundaries, including territories formerly covered only by the national grid.

The source said the states’ electricity regulation commission is expected to regulate electricity business, and oversee electricity industry activities, including licensing and regulating persons engaged in the generation, transmission and system operation within the state.

Under the law, states would be able to issue licences to private investors who have the ability to operate mini-grids and power plants, but such licenses would not apply to the distribution of electricity between states or internationally.

The new electricity law repeals the Electricity and Power Sector Reform Act of 2005 and consolidates the laws relating to the Nigerian Electricity Supply Industry (NESI).

The senate passed the electricity bill in July 2022 to solve the sector’s challenges.

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