State power commissioners have voiced strong opposition to the proposed 2025 amendment of the Electricity Act, warning that it could worsen financial pressure on electricity users and spark tensions between federal and state authorities.

In a joint statement, Forum of Commissioners of Power and Energy, led by Eka Williams and Omale Omale, said the bill risks undoing the progress made with the 2023 Electricity Act. They argue that if passed, it could create legal confusion by overriding the states’ authority over electricity distribution, leading to regulatory clashes and potential court disputes.

The commissioners are particularly concerned about the introduction of a Power Consumer Assistance Fund (PCAF), designed to subsidise electricity for vulnerable groups such as poor households, public schools, hospitals, and orphanages. While the goal is to make electricity more accessible, the funding would come from new charges imposed on higher-end electricity users, both prepaid and postpaid. These contributions would be set by the Nigerian Electricity Regulatory Commission (NERC), raising concerns about a possible new electricity surcharge.

They believe that this move will increase electricity costs for many Nigerians already struggling with high tariffs, especially those in Band A, while states are working to implement cost-reflective tariffs tied to better service.

The proposed amendment also includes a restructured funding model for the Niger-Delta Hydro-Electric Power Producing Areas Development Commission (N-HYPPADEC). It would direct portions of hydro concession fees, geological funds, and other revenues to the commission, aimed at improving development in hydroelectric-producing regions.

While the federal government sees the bill as a step toward decentralised regulation and targeted subsidies, the forum says it could derail reforms, deepen fiscal strain on both state and federal governments, and undercut President Tinubu’s energy sector agenda.