The implementation of Electricity Act 2023 could result in a potential reduction of $28 billion in annual economic losses to unreliable electricity supply, PwC Nigeria has said.
PwC, in a report based on the proceedings and outcomes from the 14th edition of PwC’s Annual Power and Utilities Roundtable, focused on the theme, ‘The Electricity Act 2023: Powering Nigeria,’ said the Act will shape the future of Nigeria’s power sector.
On June 8, 2023, President Bola Tinubu signed the Electricity Act 2023 (The Act), repealing the Electric Power Sector Reform Act, 2005.
The Electricity Act of 2023 consolidates all the laws relating to the Nigerian Electricity Supply Industry (NESI) by providing a comprehensive legal and institutional framework for the power sector in Nigeria.
It also empowers State Governments to enact laws for the generation, distribution, and transmission of electricity within their jurisdictions, including areas previously covered by the national grid.
PwC Nigeria, in its report, explored the opportunities and challenges arising from this landmark legislation based on the discussions and insights from the industry leaders at the roundtable.
“The Electricity Act 2023 will shape the future of Nigeria’s power sector. With the implementation of the Act, Nigeria could see a potential reduction of $28 billion in annual economic losses,” PwC said in the report.
The report also said the Act has created the right investment vehicle, as it empowers states to establish state-owned utilities, ‘Successor Companies,’ capable of attracting long term investment through innovative structures.
It further stated that dedicated distribution and supply companies within states can act as Special Purpose Vehicles (SPVs), drawing capital from state resources or private investors through primary or secondary markets.
