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Aiyedatiwa signs new law to regulate Ondo electricity market

By Bunmi Aduloju

Lucky Aiyedatiwa, governor of Ondo state

Lucky Aiyedatiwa, governor of Ondo, has assented to the Ondo State Electric Power Sector (Amendment) Law 2026, which strengthens the legal and institutional framework for electricity generation, transmission, and distribution in the state.

The new law, passed by the state house of assembly, amends the Ondo State Electric Power Sector Law, 2020, and aligns the state’s electricity framework with constitutional and statutory developments in Nigeria’s electricity sector, particularly the Electricity Act, 2023.

The amended law establishes the State Electricity Regulatory Commission (SERC) as an independent regulatory body responsible for overseeing electricity activities and standards across Ondo state.

According to the legislation, the commission will regulate tariffs, open access, franchises, third-party investments, mini-grids, renewable energy development, as well as issue licences and permits for electricity generation, transmission, and distribution facilities.

The law provides for the establishment of the State Independent System Operator (SISO) and State Market Operator (SMO) to facilitate the effective operation and development of the state electricity market.

The legislation also makes metering compulsory in both grid-connected and off-grid areas.

Under the law, electricity sellers are required to provide appropriate metering devices, while consumers will have direct service and payment relationships with their respective electricity providers.

The amended law also provides protection for electricity infrastructure financed by communities, associations, and private individuals.

Transformers, distribution lines and other facilities connected to the public distribution network will also be protected against arbitrary interference.

The law creates the offence of “electricity infrastructure expansion sabotage” for anyone who deliberately prevents certified electricity infrastructure from being connected to the grid.

The legislation also establishes the equipment standards and competence certification agency (ESCCA), which will inspect, test, and certify electrical equipment and installations, as well as license and accredit electrical installers, technicians, contractors, and operators.

The law further strengthens the role of the Ondo State Power Company as the commercial arm of the state in the power sector.

The company is empowered to invest in electricity generation, transmission, and distribution, including mini-grids, independent distribution networks, renewable energy, future energy technologies and small hydro projects.

The law designates electricity investments made by the state government, its agencies, communities, individuals and other recognised stakeholders as “state protected investments”, obligating the state and its agents to protect such investments.

Speaking on the development, Johnson Jaiyeola Alabi, Ondo commissioner for energy and mineral resources, described the governor’s assent as a major milestone in the state government’s efforts to build a modern, sustainable and investment-driven electricity sector.

He said the law provides the legal foundation for Ondo to take full advantage of opportunities created by the decentralisation of Nigeria’s electricity market.

Alabi said the legislation would encourage private-sector participation, strengthen regulation, protect investments, improve metering, expand electricity infrastructure, and promote renewable and alternative energy sources across the state.

Source: TheCable

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