The Forum of Commissioners of Power and Energy has raised alarm over the proposed 2025 amendment to the Electricity Act, warning that it could trigger constitutional conflicts between the federal and state governments, while also worsening financial pressures on consumers and public institutions.

In a statement released on Thursday in Makurdi, Benue State, the forum argued that the bill, if enacted, could reverse the gains of the 2023 Electricity Act and threaten the decentralised regulatory progress made in the power sector.

The statement, signed by the forum’s chairman and secretary, Eka Williams and Omale Omale, Commissioners of Power and Renewable Energy for Cross River and Benue States, respectively, said the proposed amendment risks eroding the constitutional powers of states over electricity distribution within their jurisdictions. They stated that such encroachment would disrupt the principle of cooperative federalism and may lead to prolonged legal disputes.

“The amendment bill, if passed, will create a constitutional conflict between the Federal Government and states, as well as legal and regulatory conflicts between federal and state regulators,” the forum said. “This will undermine efforts at developing a sustainable and self-financing power sector.”

The forum also expressed concern about the economic impact on electricity customers. With many consumers already facing steep tariffs under Band A service, the proposed legislation would impose additional financial burdens, especially through compulsory contributions to the Power Consumer Assistance Fund (PCAF).

“The imposition of additional financial burden on electricity customers already struggling with high electricity tariffs is unacceptable, particularly when states are striving to implement cost-reflective tariffs tied to improved service,” the commissioners said.

They warned that the amendment would increase operational costs for both federal and state governments and discourage private investment by introducing regulatory uncertainty.

The forum concluded that the 2023 Electricity Act had created a framework that empowered states to manage their own electricity markets and improve service delivery. The proposed changes, they said, would jeopardise those achievements and potentially undermine the energy sector policies of President Bola Tinubu’s administration.