Like Enugu, Ekiti secures regulatory oversight of electricity market

The Nigerian Electricity Regulatory Commission (NERC) has transferred oversight of the electricity market in Ekiti state to the Ekiti State Electricity Regulatory Bureau (EERB).

In a statement on Tuesday, the commission said the decision is in compliance with the amended Constitution of the Federal Republic of Nigeria (CFRN) and the Electricity Act 2023 (Amended).

According to the statement, NERC will maintain its position as the central regulator, overseeing inter-state/international generation, transmission, supply, trading, and system operations in line with the 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),” NERC said.

“Recall that with the EA 2023, the Commission retains the role as 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 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.”

NERC directed the Benin Electricity Distribution Company (BEDC) and Ibadan Electricity Distribution Company (IBEDC) to incorporate a subsidiary (BEDC SubCo and IBEDC SubCo) to take over the duties of supplying and distributing electricity within Ekiti State from BEDC and IBEDC.

The commission also said BEDC and IBEDC must complete the establishment of the subsidiary within 60 days starting from April 22, adding that the subsidiary must apply for and secure a licence for intrastate electricity supply and distribution from EERB.

NERC said all transfers envisaged by this order shall be completed by October 22.

On April 22, the commission transferred oversight of the electricity market in Enugu state to the Enugu State Electricity Regulatory Commission (EERC).