FG Warns DisCos to Obey State Electricity Regulators Amid Power Sector Reforms
The Federal Government has issued a stern warning to electricity distribution companies (DisCos) across the country, urging them to comply with directives from state electricity regulators in line with ongoing power sector reforms.
The directive comes as part of efforts to decentralize regulatory oversight following the Electricity Act 2023, which empowers states to establish their own electricity regulatory authorities. This shift marks a significant departure from the previous system, where the Nigerian Electricity Regulatory Commission (NERC) maintained sole control of the sector.
According to government officials, DisCos must now align their operations with both federal and state regulatory frameworks, particularly in areas concerning tariff setting, service delivery, and consumer protection. The warning follows rising complaints from consumers over billing disputes, poor service, and alleged disregard for state-level policies.
The FG emphasized that state electricity regulators play a crucial role in ensuring transparency and accountability, especially as states begin to generate, transmit, and distribute power independently. Failure by DisCos to comply could attract sanctions, including fines and possible withdrawal of operational licenses.
Industry analysts believe this move will strengthen competition in the power sector, enhance consumer satisfaction, and accelerate investments in Nigeria’s electricity market. However, they also caution that clear collaboration between state regulators and NERC will be vital to avoid regulatory conflicts.
The warning signals a new era for Nigeria’s electricity sector, where state governments are expected to take a more active role in driving energy reforms and ensuring citizens have access to reliable and affordable power.
