The Nigerian Electricity Regulatory Commission (NERC) has officially transferred regulatory oversight of the electricity market in Bayelsa State to the Bayelsa State Electricity Regulatory Agency (BYERA). This decision is in line with the amended Constitution of the Federal Republic of Nigeria and the provisions of the Electricity Act (EA) 2023, which empowers states to regulate electricity generation, transmission, and distribution within their boundaries.
According to NERC, the transfer is part of a broader effort to give states more control over managing electricity supply in their areas. The Electricity Act 2023 allows states to regulate intrastate electricity markets, while NERC retains its role as the central regulator overseeing interstate and international electricity generation, transmission, trading, and system operations.
As part of the transfer, NERC has directed the Port Harcourt Electricity Distribution Company Plc (PHED) to incorporate a new subsidiary, PHED SubCo, to assume responsibilities for intrastate supply and distribution of electricity in Bayelsa State. PHED has been given 60 days to complete the incorporation, and upon completion, PHED SubCo must obtain a license from BYERA. All regulatory and operational handovers are expected to be concluded by February 20, 2026.
This transfer is the latest in a series of state-level regulatory handovers initiated by NERC. Earlier this year, the commission transferred electricity market regulation to several states, including Abia, Plateau, and Niger. Similar transfers have also been made for Ogun, Ekiti, Ondo, and Nasarawa states. In 2024, the Federal Government transferred regulatory oversight of the electricity market in Lagos State to the Lagos State Electricity Regulatory Commission (LASERC).
The transfer of regulatory oversight to state agencies is expected to improve the efficiency and effectiveness of electricity supply in Nigeria. By giving states more control over their electricity markets, NERC aims to promote competition, increase investment, and enhance customer satisfaction. As the Nigerian electricity sector continues to evolve, the role of state regulatory agencies is likely to become increasingly important in shaping the future of the industry.
