Efforts to decentralize 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.
This transfer was officially announced in Order No. NERC/2024/042 on Tuesday, April 22, 2024, signed by NERC’s Chairman, Sanusi Garba, and the Commissioner for Legal, Licensing, and Compliance, Dafe Akpeneye.
NERC stated that this decision is in accordance with the provisions of the 2023 Electricity Act.
According to the Commission’s announcement, the EA 2023 designates NERC as the central regulator responsible for regulatory oversight of inter-state/international generation, transmission, supply, trading, and system operations.
For any state seeking to establish and regulate intrastate electricity markets, the EA mandates formal notification of processes to NERC, requesting the transfer of regulatory authority over electricity operations to the State Regulator.
NERC confirmed that the Government of Ekiti State met the legal requirements, duly notified NERC, and requested the transfer of regulatory oversight of the intrastate electricity market in Ekiti State.
In adherence to NERC’s directive, the commission instructed Benin Electricity Distribution Company (BEDC) and Ibadan Electricity Distribution Company PLC (IBEDC) to establish subsidiaries (BEDC SubCo and IBEDC SubCo) to manage intrastate electricity supply and distribution in Ekiti State.
By April 22, 2024, BEDC and IBEDC are expected to complete the incorporation of BEDC SubCo and IBEDC SubCo and obtain licenses for intrastate supply and distribution of electricity from EERB, among other requirements.
All transfers outlined in this order must be finalized by October 22, 2024, as per NERC’s statement.
It is worth noting that NERC had previously delegated oversight authority to the Enugu State Electricity Regulatory Commission, ESERC, on Monday.