Decentralization efforts within the electricity sector in Nigeria have led to the Nigerian Electricity Regulatory Commission (NERC) transferring regulatory oversight of the electricity market in Ekiti State to the Ekiti State Electricity Regulatory Bureau (EERB).
An official Order No. NERC/2024/042, signed by NERC’s Chairman, Sanusi Garba, and the Commissioner for Legal, Licensing, and Compliance, Dafe Akpeneye, announced this transfer on Tuesday, April 22, 2024.
This decision is in line with the provisions of the 2023 Electricity Act.
According to NERC, this transfer follows the amended Constitution of the Federal Republic of Nigeria (CFRN) and the Electricity Act 2023 (Amended), granting EERB regulatory oversight of the electricity market in Ekiti State.
While NERC retains its role as a central regulator overseeing inter-state/international generation, transmission, supply, trading, and system operations, states are mandated by the Electricity Act 2023 to formally notify NERC of their intention to establish and regulate intrastate electricity markets.
Ekiti State Government fulfilled all legal requirements, notified NERC, and requested the transfer of regulatory oversight to EERB for intrastate electricity operations.
As per the directives from NERC, Benin Electricity Distribution Company (BEDC) and Ibadan Electricity Distribution Company PLC (IBEDC) are instructed to establish subsidiary companies (BEDC SubCo and IBEDC SubCo) within 60 days from April 22, 2024, to take on intrastate supply and distribution responsibilities in Ekiti State.
These subsidiaries must then apply for and acquire licenses from EERB for intrastate supply and distribution of electricity.
All transfers specified in this order are expected to be finalized by October 22, 2024, as per NERC’s instructions.
It is worth noting that prior to this transfer, NERC had previously shifted oversight authority to the Enugu State Electricity Regulatory Commission (ESERC) on Monday.