Kogi Gets NERC’s Approval To Regulate State’s Electricity Market

The Kogi State government has received approval from the Nigerian Electricity Regulatory Commission (NERC) to regulate the electricity market in the state.

NERC announced the  transfer of regulatory oversight to the Kogi State Electricity Regulatory Commission (KSERC), via its order released on Wednesday.

The Commission said this decision follows Kogi’s compliance with the amended Constitution of the Federal Republic of Nigeria and the Electricity Act 2023.

Kogi is the seventh state to be granted regulatory oversight of its electricity market by the commission.

Recall that states like Imo, Enugu, Ekiti, Ondo Oyo, and Edo had previously secured the NERC’s approvals to regulate electricity markets in their various states.

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Under the amended EA 2023, NERC remains the central regulator, overseeing inter-state and international electricity 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.

NERC emphasised that while it retains authority over interstate and international electricity operations, the new framework allows states to regulate their intrastate markets.

As part of the transition, NERC has directed the Abuja Electricity Distribution Company (AEDC) to establish a subsidiary, AEDC SubCo, responsible for intrastate supply and distribution in Kogi.

This subsidiary is expected to be incorporated within 60 days and will need to obtain a licence from KSERC. All regulatory transfers are scheduled for completion by March 12, 2025.

“The sub-company shall apply for and obtain a licence for the intrastate supply and distribution of electricity from KSERC, among other directives.

“All transfers envisaged by this order shall be completed by 12th March 2025,” NERC added.

Recall that Enugu, Oyo, Imo, Ondo, Edo and Ekiti states have successfully established their own electricity regulatory commissions.

NERC) has officially transferred regulatory oversight of the electricity markets in these states to their respective commissions, allowing them to set prices and regulate local electricity operations independently.

Also, 12 states have applied to create their own regulatory bodies following the Electricity Act of 2023, only these three have completed the necessary steps to become operational. The NERC is expected to continue overseeing electricity businesses in other states until they enact their own market laws.