Enugu Electricity Market: When the disruptive innovator blazes the trail

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While the subnationals had yet to think through what to do with the decoupling of electricity from the Exclusive List to the Concurrent List, occasioned by the constitutional amendment as well as Electricity Act 2023, Governor Peter Mbah of Enugu State took steps to position his state to benefit from this devolution of the power sector.

These legal frameworks actually played into his hands, as he had burnt with the passion to turn the state’s fortunes around by growing its economy from $4.4 billion to $30 billion GDP, a proposition of which power is an essential driver. As they say, when opportunity meets preparation, success is inevitable.

“You can not talk about industry or private sector investment if you don’t have electricity or power. Enugu, under our administration, is designed and indeed prepared to be the premier destination for investment, and this is part of the enabler,” Mbah had said.For a private-sector- driven economy such as Mbah charts for Enugu State, ease-of-doing-business is sine qua non, the bait to investors, as it is a pointer to good returns on investment.

Thus, a couple of days ago, the Mbah Administration recorded a landmark when the National Electricity Regulatory Commission , in a historic move, transferred the oversight of Enugu electricity market to the Enugu State Electricity Regulatory Commission with effect from May 1, 2024. NERC acknowledged that it was the first of such transfer to a subnational agency.

The coast is now clear for the entrance of other players in the electricity value chain in the state. The time is come to destroy monopoly and have other competitors play in the market. Power generating companies now have the opportunity to offer Enugu people alternative sources of power. Competition would bring out the best of the market and allow the invisible hand of demand and supply to control it.This also goes with the fact that power will be cheaper and regular.

 

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