NERC transfers oversight of Enugu electricity market to state government

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

In a statement on Monday, the commission said the decision complied 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 as outlined in 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 Enugu State from the Commission to the Enugu State Electricity Regulatory Commission,” NERC said.

“With the EA, 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 Enugu 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 Enugu State.”

NERC directed the Enugu Electricity Distribution Company (EEDC) Plc to establish a subsidiary (EEDC SubCo) to take over the duties of supplying and distributing electricity within Enugu state from EEDC.

The commission also said EEDC 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 EERC.

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