States, LGs get Authorization to Generate and Distribute Electricity

The Nigerian Electricity Regulatory Commission (NERC) has authorized local governments and communities the ability to generate and distribute their own electricity.

NERC recently issued two regulations entitled “NERC Regulation on Embedded Generation 2012,” and “NERC Regulation for Independent Electricity Distribution.”

The Embedded Generation regulation authorizes investors, communities, states and local governments to generate and distribute electricity for their exclusive consumption using facilities of existing electricity distribution companies or independent electricity distribution network operators, whilst the Independent Electricity Distribution regulation permits communities, local and state governments to invest in electricity distribution networks in areas without access to the grid or distribution network or areas poorly serviced.

The regulations empower States with electricity generation infrastructure to distribute electricity to their citizens. They also empower local governments and communities to partner with investors or look inwards in developing power solutions in order to provide their citizens with electricity.

The Chairman of NERC, Dr. Sam Amadi speaking on the development said, “These are the most important regulations today in this country because we do not have enough electricity to go round. We also have so many constraints preventing us from having enough to generate, transmit and distribute.

“From now on, the much expected expansion in the electricity supply to the end- users would be easily realisable. With these regulations, we have further unlocked the opportunities in the sector to community, private and government participations. The laws are expected to revolutionise the sector.