New framework establishes independent regulator, makes metering compulsory and protects private power investments……
Ondo State Governor, Lucky Aiyedatiwa, has signed the Ondo State Electric Power Sector (Amendment) Law 2026, introducing a stronger regulatory and institutional framework for electricity generation, transmission and distribution across the state.
The legislation, passed by the Ondo State House of Assembly, amends the Ondo State Electric Power Sector Law 2020 and brings the state’s electricity framework in line with constitutional and statutory changes introduced by the Electricity Act 2023.
A major provision of the amended law is the establishment of the State Electricity Regulatory Commission (SERC) as an independent body responsible for regulating electricity activities and enforcing standards across Ondo State.
The commission will have oversight of tariffs, open access arrangements, franchises, third-party investments, mini-grids and renewable energy development. It will also issue licences and permits for electricity generation, transmission and distribution facilities.
The law further provides for the creation of the State Independent System Operator and State Market Operator to support the effective management and development of the state’s electricity market.
It also makes metering mandatory in both grid-connected and off-grid areas, requiring electricity sellers to provide appropriate metering equipment to consumers.
Under the new framework, consumers will maintain direct service and payment relationships with their respective electricity providers.
The legislation also introduces measures to safeguard electricity infrastructure funded by communities, associations and private individuals.
Transformers, distribution lines and other facilities connected to public distribution networks are similarly protected from arbitrary interference.
The law creates the offence of “electricity infrastructure expansion sabotage”, targeting individuals who deliberately obstruct the connection of certified electricity infrastructure to the grid.
Another key provision is the establishment of the Equipment Standards and Competence Certification Agency (ESCCA), which will be responsible for inspecting, testing and certifying electrical equipment and installations.
The agency will also license and accredit electrical installers, technicians, contractors and operators working within the state.
The amended legislation strengthens the commercial mandate of the Ondo State Power Company, empowering it to participate in electricity generation, transmission and distribution.
Its investment scope extends to mini-grids, independent distribution networks, renewable energy projects, emerging energy technologies and small hydro power projects.
The law further classifies electricity investments made by the state government, its agencies, communities, individuals and other recognised stakeholders as “state protected investments”.
The designation places an obligation on the state government and its agents to protect such investments.
Reacting to the development, the Ondo State Commissioner for Energy and Mineral Resources, Johnson Jaiyeola Alabi, described the governor’s assent as a significant milestone in the state’s efforts to establish a modern, sustainable and investment-driven electricity sector.
Alabi said the amended law would provide the legal foundation for Ondo State to take full advantage of opportunities created by the decentralisation of Nigeria’s electricity market.
According to him, the legislation is expected to attract greater private-sector participation, strengthen regulatory oversight, protect investments, improve metering and accelerate the expansion of electricity infrastructure.
He added that the new framework would also support the development of renewable and alternative energy sources across the state.
