NERC transfers regulatory oversight of Imo electricity market to state government

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

The directive takes effect immediately, NERC said in a statement dated June 27 and signed by Sanusi Garba, its chairman.

According to the statement, the Electricity Act of 2023 mandates states to notify NERC of their plans for intrastate electricity markets and request the commission’s transfer of regulatory authority to the state regulator.

The commission said the government of Imo complied with the legal requirements, duly notified NERC, and requested for “the transfer of regulatory oversight of the intrastate electricity market in Imo state”.

Consequently, NERC directed the Enugu Electricity Distribution Company (EEDC) to incorporate a subsidiary (EEDC SubCo) to assume responsibilities for the supply and distribution of electricity in the state.

“EEDC shall complete the incorporation of EEDC SubCo within 60 days from the effective date of this Order and, EEDC SubCo shall apply for and obtain a licence for the intrastate supply and distribution of electricity from ISERC,” the commission said.

“EEDC shall identify the actual geographic boundaries of Imo State and carve out its network in Imo State as a standalone network with the installation of boundary meters at all border points where the network crosses from Imo State into another state.”

NERC said all planned transfers must be completed by December 31.

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

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