NERC Hands Over Regulatory Powers To Plateau Electricity Commission

Nigerian Electricity Regulatory Commission (NERC) has transferred the regulatory oversight of the electricity market in Plateau State to the Plateau State Electricity Regulatory Commission (PSERC).

NERC, in a post on its official X handle, said the decision aligns with the amended Constitution of the Federal Republic of Nigeria and the Electricity Act 2023 (Amended), which empowers states to regulate their intrastate electricity markets upon formal notification and request to NERC.

In addition to Plateau State, 10 other states have taken over or are in the process of taking over their electricity markets. These states include Lagos, Enugu, Ondo, Ekiti, Kogi, Oyo, Imo, Edo, and Niger. Some of these states, such as Kogi, Enugu, Ekiti, Ondo, and Imo, have fully assumed control, while others are still transitioning.

As part of this transfer, Jos Electricity Distribution Plc (JED) is required to establish a subsidiary, JED SubCo, to handle intrastate electricity supply and distribution in Plateau State. JED must complete this incorporation within 60 days from March 12, 2025, and the subsidiary will need to obtain a license from PSERC.

NERC also stated that all transfers are expected to be finalised by September 12, 2025.

Recall that with the EA 2023, the NERC retains the role as a central regulator with regulatory oversight of 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 Plateau 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 Plateau State.

The transfer Order by NERC has the following provisions:

– Direct Jos Electricity Distribution Plc (JED) to incorporate a subsidiary (JED SubCo) to assume responsibilities for intrastate supply and distribution of electricity in Plateau State from JED.

– JED shall complete the incorporation of JED SubCo within 60 days from 12th March 2025. The sub-company shall apply for and obtain licence for the intrastate supply and distribution of electricity from PSERC, among other directives.