Overview

The Electricity Act, 2023, is a comprehensive legislation that repeals the Electric Power Sector Reform Act, No. 6, 2005, and provides a new legal and institutional framework for the Nigerian electricity supply industry. It consolidates laws related to electricity generation, transmission, system operation, distribution, supply, trading, and enforcement of consumer rights and obligations. The Act aims to create a holistic integrated resource plan, recognize all energy sources including renewable energy, promote competition, and attract investments. It is structured into multiple parts covering preliminary provisions, national integrated electricity policy, development of a competitive national electricity market, incorporation and licensing of the Independent System Operator (ISO), and the establishment, functions, and powers of the Nigerian Electricity Regulatory Commission (NERC). Key sections include objectives (Section 1), application scope (Section 2), national electricity policy (Sections 3-5), competition provisions (Sections 6-14), ISO incorporation and licensing (Sections 15-32), and NERC establishment and governance (Sections 33-62). The Act emphasizes transitioning to a competitive market, protecting consumer rights, and integrating renewable energy into Nigeria's energy mix.

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