Nigerian Electricity Regulatory Commission Transfers Regulatory Oversight to Edo State
In a significant move, the Nigerian Electricity Regulatory Commission (NERC) has issued an order to transfer regulatory oversight of the electricity market in Edo State to the Edo State Electricity Regulatory Commission (ESERC). The decision was made in compliance with the amended Constitution of the Federal Republic of Nigeria (CFRN) and the Electricity Act 2023 (Amended).
According to the statement by NERC, the commission retained its role as a central regulator with regulatory oversight on inter-state and international generation, transmission, supply, trading, and system operations. However, the Electricity Act 2023 mandates any state that intends to establish and regulate intrastate electricity markets to deliver a formal notification of its processes and request NERC to transfer regulatory authority over electricity operations in the state to the State Regulator.
The Government of Edo State complied with the conditions precedent in the laws, duly notified NERC, and requested the transfer of regulatory oversight of the intrastate electricity market in the state. As a result, NERC has issued a transfer order with specific provisions.
The order directs Benin Electricity Distribution Company (BEDC) to incorporate a subsidiary, BEDC SubCo, to assume responsibilities for intrastate supply and distribution of electricity in Edo State from BEDC. BEDC is expected to complete the incorporation of BEDC SubCo within 60 days from August 21, 2024. The sub-company will also need to apply for and obtain a licence for the intrastate supply and distribution of electricity from ESERC, among other directives.
All transfers envisioned by the order are expected to be completed by February 20, 2025. This development marks a significant milestone in the electricity sector in Nigeria, as it paves the way for the establishment of a more decentralized and state-specific regulatory framework.
