Regulatory oversight of the electricity market in Enugu State has been transferred to the Enugu State Electricity Regulatory Commission by the Nigerian Electricity Regulatory Commission. The directive was announced in a statement on the commission’s website on Monday.
According to the commission, this transfer is in compliance with the amended Constitution of the Federal Republic of Nigeria and the Electricity Act 2023. The Commission emphasized that it will continue to act as a central regulator, overseeing inter-state/international generation, transmission, supply, trading, and system operations.
The statement states, “In compliance with the amended Constitution of the Federal Republic of Nigeria and the Electricity Act 2023 (Amended), the Nigerian Electricity Regulatory 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.
“With the EA, the Commission retains the role as a 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.”
The Government of Enugu State has fulfilled the requirements under the law by formally notifying NERC and requesting the transfer of regulatory oversight of the intrastate electricity market in Enugu State.
NERC’s order included directing Enugu Electricity Distribution Company PLC to establish a subsidiary (EEDC SubCo) to take on responsibilities for intrastate supply and distribution of electricity in Enugu State from EEDC.
“EEDC must complete the incorporation of EEDC SubCo within 60 days from April 22, 2024, and the subsidiary must apply for and obtain a license for the intrastate supply and distribution of electricity from EERC, among other directives.
“All transfers outlined in this order must be finalized by October 22, 2024.”