The Act specifically allows states to:

  • Pass laws on all aspects of generation, transmission, system operation, distribution, supply and retail of electricity within that State
  • Pass laws on the establishment, promotion and management of State electricity power stations
  • Pass laws to establish a state electricity market, a state regulatory authority or any entity by whatever appellation with powers to regulate such markets;
  • Collaborate with local governments and the federal government for rural electrification, or with local governments and distribution licensees to ensure electricity access to rural, unserved and underserved areas, promote investments in electricity or provision of electricity within states or local government areas; or
  • Create a State Integrated Electricity Policy and Strategic Implementation Plan.
  • Issue licenses and regulate activities of Independent Electricity Distribution Network (IEDN) and Independent Electricity Transmission Network (IETN) licensees as long as the activities of such licensees do not depend on any part of the national grid.

As such, the Nigerian Electricity Regulatory Commission (NERC) assumes the role of regulating inter-state transactions while the State regulator is responsible for activities that occur entirely within the state.

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