PwC’s Annual Power & Utilities Roundtable (14th edition)

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PwC's Annual Power & Utilities Roundtable (14th edition) May 2024

Dear Vitus We're pleased to share our latest publication on the 14th PwC Annual Power & Utilities Roundtable, focusing on 'The Electricity Act 2023: Powering Nigeria.' The Electricity Act of 2023 consolidates all the laws relating to the Nigerian electricity supply industry. 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. Our report explores the opportunities and challenges arising from this landmark legislation based on the discussions and insights from the industry leaders at the roundtable. Download the full report Unlocking the opportunities 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. Creating the right investment vehicle. The Act empowers states to establish state owned utilities, 'Successor Companies,' capable of attracting long term investment through innovative structures. 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. Collaboration in fundraising. Many utilities require patient capital. With the Power Consumer Assistance Fund (PCAF) serving as a joint federal and state mechanism for targeted subsidies, the Act facilitates collaborative fundraising efforts. Navigating challenges Cost implications. Adopting the Electricity Act 2023 involves substantial financial investments. Engaging legal and commercial expertise, developing and establishing state level regulatory bodies come at a significant cost, competing for limited state resources. Thorough due diligence and feasibility studies are crucial to ensure efficient resource allocation and project viability. Regulatory uniformity. Having vastly different electricity laws across states would be detrimental, creating market distortions and unfair competition. There is a need to ensure that regulation of electricity across the federation is fairly consistent and avoid regulatory capture. For more details on the publication, please contact: Contact us

Pedro Omontuemhen Partner and Energy, Utilities & Resources Leader, West Market Area +2342012711700 Email Bimbola Banjo Partner, Energy, Utilities & Resources +2342012711700 Email

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