NERC transfers regulatory oversight of Edo electricity market to state government

The Nigerian Electricity Regulatory Commission (NERC) has issued an order transferring regulatory oversight of the electricity market in Edo to the state’s electricity regulatory commission (ESERC).

In an order dated August 20 and signed by Musiliu Oseni, NERC’s vice-chairman, the commission said the directive would take effect immediately.

According to the order, the transfer of the oversight is in compliance with the amended Constitution of the Federal Republic of Nigeria (CFRN) and the Electricity Act (EA) 2023 (Amended). 

“Recall 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,” NERC said.

“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.”

Consequently, NERC said the Edo state government 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 the state.

Therefore, NERC directed the 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 shall complete the incorporation of BEDC SubCo within 60 days from 21st August 2024. The subcompany shall apply for and obtain licence for the intrastate supply and distribution of electricity from ESERC, among other directives,” NERC said.

All transfers envisaged by the order, according to NERC, must be completed by February 20, 2025.

On April 22, Enugu and Ekiti states received approval from NERC to regulate their electricity markets.

The regulator, on April 23, also transferred oversight of the electricity market in Ondo to the state’s electricity regulatory bureau.

On July 1, the commission transferred regulatory oversight of the power market in Imo to the state’s electricity regulatory commission.

Also, on August 5, NERC also transferred regulatory oversight of the electricity market in Oyo to the state’s electricity regulatory commission.