The Nigerian Electricity Regulatory Commission, NERC, has transferred regulatory oversight of the electricity market in Ekiti State to the Ekiti State Electricity Regulatory Bureau, EERB, amid efforts to decentralise the sector.
The transfer was made known by NERC on Tuesday, April 22, 2024, Order No. NERC/2024/042 signed by the Commission’s Chairman, Sanusi Garba, and the Commissioner for Legal, Licensing, and Compliance, Dafe Akpeneye.
According to the Commission, the action aligns with the 2023 Electricity Act.
“In compliance with the amended Constitution of the Federal Republic of Nigeria (CFRN) and the Electricity Act 2023 (Amended), the Nigerian Electricity Regulatory Commission (NERC or the Commission) has issued an order to transfer regulatory oversight of the electricity market in Ekiti State from the Commission to the Ekiti State Electricity Regulatory Bureau (EERB).”
The statement recalled 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 said NERC also mandates any state that intends to establish and regulate intrastate electricity markets to formally notify its processes and requests NERC to transfer regulatory authority over electricity operations in the state to the State Regulator.
The commission noted that based on this, the Government of Ekiti 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 Ekiti State.
In line with the NERC’s notice, the commission directed Benin Electricity Distribution Company (BEDC) and Ibadan Electricity Distribution Company PLC (IBEDC) to incorporate a subsidiary (BEDC SubCo and IBEDC SubCo) to assume responsibilities for intrastate supply and distribution of electricity in Ekiti State from BEDC and IBEDC.
According to NERC, BEDC and IBEDC shall complete the incorporation of BEDC SubCo and IBEDC SubCo within 60 days from April 22, 2024 and the sub-companies shall apply for and obtain licences for the intrastate supply and distribution of electricity from EERB, among other directives.
All transfers envisaged by this order shall be completed by October 22, 2024, said NERC.
Recall that on Monday, NERC transferred oversight power to the Enugu State Electricity Regulatory Commission, ESERC.
