NERC Grants Regulatory Oversight To Niger Electricity Commission

The Nigerian Electricity Regulatory Commission (NERC) has issued an order to transfer regulatory oversight of the electricity market in Niger State from the Commission to the Niger State Electricity Regulatory Commission (NSERC)

This was in continuation with the electricity market liberalisation policy of the federal government.

NERC made this known in a post on its verified X (formerly Twitter) handle on Friday.

Niger is the ninth state to begin the implementation of the Electricity Act 2023, signed 18 months ago by President Bola Tinubu.

This was in compliance with the Constitution of the Federal Republic of Nigeria and the Electricity Act 2023 as Amended.

The Commission, however, in accordance with the provisions of the EA 2023, 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 Niger 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 Niger State.

Following the request, NERC directed the Abuja Electricity Distribution Plc (AEDC) to incorporate a subsidiary (AEDC SubCo) to assume responsibilities for intrastate supply and distribution of electricity in Niger State from AEDC.

The Commission said AEDC shall complete the incorporation of AEDC SubCo within 60 days from 10th January 2024, and the sub company shall apply for and obtain licence for the intrastate supply and distribution of electricity from NSERC, among other directives.

It also directed Ibadan Electricity Distribution Company Plc (IBEDC) to incorporate a subsidiary (IBEDC SubCo) to assume responsibilities for intrastate supply and distribution of electricity in Niger State from IBEDC.

NERC said IBEDC shall complete the incorporation of IBEDC SubCo within 60 days from 10th January 2024. The sub company shall apply for and obtain licence for the intrastate supply and distribution of electricity from NSERC, among other directives.

It directed that all transfers envisaged by the order to be completed by July 9, 2025.