Nigerian Electricity Regulatory Commission (NERC) has clarified that state governments lack jurisdiction over the national grid and federal electric power stations, which operate under federal laws and licences.
In response to controversy over the Enugu Electricity Regulatory Commission’s decision to cut the Band A tariff, NERC has advised states to incorporate wholesale costs into their tariffs or be prepared to subsidize any shortfalls.
While states with full regulatory authority over their intrastate markets can develop tariffs for local consumers, NERC emphasized that they must account for wholesale grid costs to avoid market distortions. The commission further warned that no institution should make decisions risking the national grid’s stability or causing financial crises in the electricity market, reaffirming the constitutional powers of federal authorities.
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