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).
The move, NERC said, was in compliance with the amended 1999 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.
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