Electricity Act: NERC Transfers Regulatory Functions To 8 State Govts

The Nigerian Electricity Regulatory Commission (NERC) has transferred regulatory oversight of the electricity markets in Ogun State, to the Ogun State Electricity Regulatory Commission (OGERC).

By this latest transfer, the commission has so far authorised eight states to regulate their own electricity markets. These states are Ekiti, Enugu, Imo, Kogi, Ondo, Oyo, Edo, Lagos and Ogun.

This move aligns with the amended constitutional provisions and the Electricity Act 2023, allowing states to manage their electricity sectors independently. The transfer is part of a broader initiative to decentralise electricity regulation, previously centralised under NERC, and is expected to enhance local governance in the electricity market.

The move, NERC said, is in compliance with the amended Constitution of the Federal Republic of Nigeria (CFRN) and the Electricity Act 2023 (Amended).

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.

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 Ogun 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 Ogun State.

By the transfer Order, NERC has directed Eko Electricity Distribution Company (EKEDP), Ikeja Electric PLC (IE) and Ibadan Electricity Distribution Company (IBEDC) to incorporate subsidiaries: EKEDP SubCo, IE SubCo and IBEDC SubCo respectively to assume responsibilities for intrastate supply and distribution of electricity in Ogun State from EKEDP, IE and IBEDC.

EKEDP, IE and IBEDC are expected to complete the incorporation of EKEDP SubCo, IE SubCo and IBEDC SubCo within 60 days from 24th December 2024.

These sub-companies shall apply for and obtain licences for the intrastate supply and distribution of electricity from OGERC, among other directives.

All transfers envisaged by this order shall be completed by 23rd June 2025, NERC stated.