Electricity Act 2023: FCCPC Urges Unified Consumer Protection Amidst Emerging State Markets

Nigeria’s burgeoning state electricity markets risk investment paralysis if a fragmented regulatory approach takes hold, the Federal Competition and Consumer Protection Commission (FCCPC) has warned. The commission is advocating for robust collaboration between federal and state electricity regulators to establish a harmonised consumer protection framework, essential for safeguarding electricity users and ensuring investor certainty under the landmark Electricity Act 2023.

Speaking at a recent stakeholders’ engagement in Abuja, FCCPC Executive Vice Chairman and Chief Executive Officer, Mr. Tunji Bello, stressed that consumers must receive equitable protection regardless of their geographical location. The meeting, attended by officials from the Nigerian Electricity Regulatory Commission (NERC), the Nigerian Electricity Management Services Agency (NEMSA), and various state electricity regulatory commissions, underscored the implications of the Electricity Act 2023, which empowers states to establish independent electricity regulatory bodies and manage intrastate markets.

Mr. Bello described the Act as a transformative reform, enabling states to tailor regulations to their specific economic and social contexts, thereby fostering innovation and responsiveness. However, he cautioned that the success of these reforms hinges on inter-agency cooperation. “Consumers experience electricity as one system,” Bello stated, highlighting that their primary concerns are reliable service and fair treatment, not jurisdictional boundaries. He emphasised that regulators must work seamlessly to meet consumer expectations.

The FCCPC’s role in economy-wide consumer protection and competition oversight complements NERC’s industry regulation, NEMSA’s technical standard enforcement, and state regulators’ supervision of intrastate markets. Bello cited the suspension of the proposed replacement of obsolete Unistar prepaid meters as a prime example of effective collaboration. Following FCCPC-convened discussions involving NERC, NEMSA, and electricity distribution companies, the replacement exercise was halted pending compliance with regulatory requirements, ensuring consumers would not bear the cost or face estimated billing. This resolution, he noted, reinforced the principle that consumers should not be penalised for infrastructure obsolescence.

The ultimate regulatory objective, Bello asserted, is proactive prevention of consumer harm rather than reactive complaint resolution. He urged regulators to prioritise cooperation over institutional rivalry, stating, “Strong regulation is not built on institutional rivalry. It is built on cooperation, mutual respect, and a shared commitment to the public interest.” This coordinated approach will become increasingly critical as more states develop their electricity markets, ensuring consumers nationwide receive consistent and effective protection.

Anthony Essien, Assistant Director and Head of Consumer Protection Department at NERC, echoed these sentiments, underscoring the vital role of harmonised regulations in maintaining investor confidence. He noted that the prospect of navigating 36 different regulatory regimes presents a significant challenge for investors. The FCCPC’s participation in NERC’s Consumer Complaints Forum further exemplifies this growing partnership.

State regulators, such as Chijioke Okonkwo, Chairman of the Enugu State Electricity Regulatory Commission, and Prof. Frank Nwoye Okafor, Chairman of the Anambra State Electricity Regulatory Commission, acknowledged the timeliness of the engagement. They highlighted the opportunity for state bodies to learn from federal agencies and stressed that regulatory fragmentation could create significant coordination problems and investor uncertainty. The Electricity Act 2023, which ended decades of federal monopoly, has already seen 16 states establish their own regulatory commissions, making unified consumer protection a paramount concern for the sector’s future.

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