The goal of UKNIAF’s Power component is to provide targeted support and build sector capacity that will ensure alignment between power sector policies and regulations. This will lead to the provision of electricity in a sustainable way through a medium-term electricity market and provide electricity access options for Nigerians. Regulatory independence is the key driver in achieving a contract-based market as it improves transparency. While a contract-based market will lead to improved efficiencies and expanded utilisation, it could negatively affect the poor if not designed with this class in mind from the onset. Therefore the component is taking a proactive approach by work with the regulator to ensure that the life-line tariff for the poor continues to be implemented, through cross-market subsidies by the more economically empowered consumers. There will also be focus on customer enumeration and mechanisms to strengthen the customer interface platforms for the Nigeria Electricity Regulatory Commission and the distribution companies (DisCo) s. This will ensure that the poor are properly counted and adequate provisions are made for the life-line tariff to be continuously revised and effectively implemented.

Another goal for the Power Component is increasing access in the off-grid space which, when achieved, progresses the pro-poor agenda. Improved access, especially to off grid power, will provide social opportunities to poor and marginalised groups, especially women, in a resilient, sustainable way.