The Nigerian Electricity Regulatory Commission (NERC) has officially transferred regulatory oversight of the electricity market in Oyo State to the Oyo State Electricity Regulatory Commission (OSERC).
This decision contained in the Order of the commission, aligns with the provisions of the Electricity Act (EA) of 2023, empowering state governments to manage their electricity markets.
Recall that with the EA 2023, the Commission retains the role as a central regulator with regulatory oversight on the inter-state/international generation, transmission, supply, trading and system operations.
This order aims to facilitates OSERC’s ability to regulate local electricity distribution, enhancing operational efficiency and responsiveness to state-specific needs.
Recall that NERC has similarly transferred oversight to other states, including Ondo and Enugu, promoting decentralised electricity regulation across the country.
The EA also mandates any state that intends to establish and regulate intrastate electricity markets to deliver a formal notification of its processes and requests NERC to transfer regulatory authority over electricity operations in the state to the State Regulator.
“Based on this, the government of Oyo State complied with the conditions precedent in the laws, duly notified NERC and requested for the transfer of regulatory oversight of the intrastate electricity market in Oyo State.
“The transfer Order by NERC has the following provisions:- Direct Ibadan Electricity Distribution Company (IBEDC) to incorporate a subsidiary (IBEDC SubCo) to assume responsibilities for intrastate supply and distribution of electricity in Oyo State from IBEDC.”
Also, IBEDC is required to complete the incorporation of IBEDC SubCo within 60 days from 6th August 2024.
The sub-company is also expected to apply for and obtain licence for the intrastate supply and distribution of electricity from OSERC, among other directives.
“All transfers envisaged by this order shall be completed by 5th February 2025,” the commission mandated.
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