EERC Assumes Full Regulation Of Enugu State Electricity Market

The Enugu State Electricity Regulatory Commission, EERC, has assumed full regulatory oversight of the Enugu State electricity market.

This development followed the lapsing of the transition period for transferring regulatory oversight from the Nigeria Electricity Regulatory Commission (NERC) to the state agency.

The historic move, which makes Enugu the first state to commence the development of a sub-national electricity market in both Nigeria and Africa, also saw the EERC, issue licenses to Mainpower Electricity Distribution Limited, an EEDC subsidiary set up to take over electricity operations of EEDC in Enugu State effective midnight of Wednesday and the first Independent Power Project, IPP, in Enugu State, to Fedikore Limited, to build a power plant with the capacity of generating 10MW.

This followed the enactment of the Enugu State Electricity Law, 2023, and the setting up of the EERC, which saw Enugu State emerge in April this year as the first state to be handed the regulatory power over its electricity market by NERC, but with a six-month transition period, which elapsed on Tuesday, thus effectively empowered to now fully exercise the constitutional right to develop its electricity sector across the value chain of generation, transmission, distribution, or retailing services, including Mini-Grid and Off-Grid electrification solutions.

In his address, the chairman of EERC, Chijioke Okonkwo, described the event as significant “as it marks the beginning of the development of sub-national electricity markets not only in Nigeria, or West Africa, but across the African continent.

“Today completes the six months transition for the transfer of regulatory authority from the national regulator, NERC, to the EERC, as stipulated in Section 230 of the Electricity Act 2023, and the consequential Order of NERC dated 22nd April 2024.

“Today, we now take on the monumental responsibility of regulating and guiding the electricity sector in Enugu State. This assumption of regulatory oversight is not just about the transfer of authority, but represents a shared vision for a more efficient, responsive, and innovative electricity market.

“NERC has laid a strong foundation, and we are confident that EERC will build on that legacy to bring about positive changes for the people of Enugu State and beyond, in line with Enugu’s realities.

“Our mission is clear: to ensure that Enugu has access to reliable, cost effective, and sustainable electricity while promoting fairness and innovation in the sector.

“We are here to enhance the quality of life for all residents, businesses, and stakeholders by creating an efficient regulatory environment that fosters growth and transparency,” Okonkwo stated.

The chairman commended Governor Peter Mbah administration for zero political interference in the affairs of the commission.

“I must say that we have enjoyed a tremendous level of independence from the state government activities and our own role. We have been established and supported to take off. However, we have also been given the authority and independence to develop the regulations and policies that we have put in place, not minding how they impact on the state government,” he concluded.

A board member of Mainpower Electricity Distribution Ltd, Kester Enwereonu, assured the people of the state of a better electricity experience in all ramifications.

“We are not just identifying with EERC as the pacesetter, Mainpower will also want to be the pacesetter. We are assuring you that in the coming weeks, months, and years, and with the regulatory structure that are now tailored to the needs and purposes of the state, we are going to have an improved service to the people of Enugu State,” he said.

On his part, the founder and MD/CEO of Fedikore Ltd, Dr. Chukwueloka Umeh, described what is happening in Enugu as revolutionary, expressing Fedikore’s joy to partner with EERC.

“The EERC has done a fantastic job in starting this revolution that is about to happen and we are pleased to be a part of it. Fedikore set up last year as the first IPP in Enugu State. We built 4mw plant at 9th Mile to supply power to the Enugu State Water Corporation here in Enugu. So, we are very committed to working with the state, especially given the leadership provided by both the government and the EERC so far. We believe that with the support of EERC, the state and with the partnership with Mainpower, we can do amazing things here to start the industrial revolution that we are talking about for many years. It is possible,” Umeh stated.