In compliance 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.
This decision was communicated in Order No: NERC/2024/110 issued by the commission on Tuesday, making Oyo the fifth state granted such authority to independently regulate electricity beyond NERC’s oversight.
Prior to Oyo, Enugu, Ekiti, Ondo, and Imo states had already been granted autonomy to regulate their respective electricity markets concerning power generation, transmission, and distribution.
The new regulatory oversight order for Oyo State, signed by NERC Chairman Sanusi Garba, will come into effect on August 6, 2024.
According to NERC, the Oyo State Government has taken steps to implement the recent Constitutional and Electricity Act amendments and has met the required conditions stated in the laws.
The state is keen on assuming regulatory control of its intrastate electricity market.
The state government formally notified the commission and requested the transfer of regulatory oversight in line with the Electricity Act.
“Under Section 230(3) of the Act, the commission is mandated to create a transition plan and timeline for transferring regulatory oversight of the intrastate electricity market from NERC to OSERC upon formal notification,” explained NERC.
NERC’s order initiates the process of transferring regulatory oversight for Oyo State’s intrastate electricity market from the commission to OSERC in accordance with the Constitution and the Act.
It aims to develop a transition plan for this transfer, addressing any transitional issues that may arise.
As part of this transition, NERC directed Ibadan Electricity Distribution Plc to establish a subsidiary called IBEDC SubCo under the Companies and Allied Matters Act to handle intrastate supply and distribution of electricity in Oyo State.
IBEDC has 60 days from the order’s effective date to complete the incorporation of IBEDC SubCo, which will then apply for a license for intrastate electricity supply and distribution from OSERC, as per NERC’s instructions.
In the directive, it was mentioned that “IBEDC must define the specific boundaries of Oyo State within its network, install boundary meters at the border points, create an asset register of all power infrastructure in Oyo State, and manage contractual obligations and liabilities related to its operations within the state,” among other responsibilities.