In accordance with the Electricity Act 2023, the Nigerian Electricity Regulatory Commission has authorized the Oyo State Electricity Regulatory Commission to oversee the electricity market in Oyo.
Order No: NERC/2024/110, issued by the commission on Tuesday, designates Oyo as the fifth state granted the authority to regulate power independently from NERC.
Enugu, Ekiti, Ondo, and Imo states have previously been granted permission to regulate their electricity markets concerning power generation, transmission, and distribution.
The implementation of the new order transferring regulatory oversight to Oyo State, signed by NERC Chairman Sanusi Garba, will commence on August 6, 2024.
NERC has stated that the Oyo State Government has begun implementing the amended Constitution and Electricity Act, as well as meeting the required conditions as outlined in the laws.
The state is eager to take on the regulatory responsibilities of the intrastate electricity market in Oyo, having duly notified the commission and requested the transfer of regulatory oversight in compliance with the Electricity Act.
“Section 230(3) of the Act mandates the commission to develop a transition plan and timeline for the transfer of regulatory oversight of the intrastate electricity market from NERC to OSERC upon receipt of formal notification,” NERC explained.
The order issued by NERC initiates the transfer process of regulatory oversight for the intrastate electricity market in Oyo State from the commission to OSERC in accordance with the Constitution and the Act.
It aims to establish a transition plan for transferring regulatory oversight for the intrastate electricity market in Oyo State from the commission to OSERC and to address any transitional issues that may arise from the transfer.
Consequently, NERC directed Ibadan Electricity Distribution Plc to establish a subsidiary named IBEDC SubCo under the Companies and Allied Matters Act to assume responsibilities for intrastate electricity supply and distribution in Oyo State from IBEDC.
IBEDC is required to complete the incorporation of IBEDC SubCo within 60 days from the order’s effective date, after which IBEDC SubCo will apply for and obtain a license for intrastate electricity supply and distribution from OSERC, as outlined by NERC.
The directive states, “IBEDC must identify the geographic boundaries of Oyo State, establish its network in Oyo State as an independent entity with boundary meters at all border points crossing into other states.
“IBEDC should create an asset register of all power infrastructure in Oyo State, assess and distribute contractual obligations and liabilities related to IBEDC’s operations in Oyo State,” among other duties.