Nigerian Electricity Regulatory Commission (NERC) has transferred electricity regulatory authority to Ogun State Electricity Regulatory Commission (OGERC) in jurisdictions within the state. In a statement on Monday, the power sector regulator stated that this was in compliance with the amended constitution of Nigeria and the Electricity Act 2023, as amended.
The new electricity law essentially decentralises the supply and regulation of electricity to sub-national governments, thereby ending the decades-long centralisation of the power sector, which has been blamed for hobbling the growth of the industry.
Under the Electricity Act 2023, the commission retains its role as a central regulator with regulatory oversight on the inter-state/international generation, transmission, supply, trading and system operations.
The Act also mandates any state that intends to establish and regulate intrastate electricity markets to deliver a formal notification of its processes and requests to NERC to transfer regulatory authority over electricity operations in the state to the state regulator.
NERC said the government of Ogun State had complied with the conditions precedent in the laws, duly notified NERC, and requested the transfer of regulatory oversight of the intrastate electricity market in Ogun State.
The commission stated, “The Transfer Order by NERC has the following provisions: Direct Eko Electricity Distribution Company (EKEDP), Ikeja Electric PLC (IE) and Ibadan Electricity Distribution Company (IBEDC) to incorporate subsidiaries: EKEDP SubCo, IE SubCo and IBEDC SubCo, respectively, to assume responsibilities for intrastate supply and distribution of electricity in Ogun State from EKEDP, IE and IBEDC.
“EKEDP, IE and IBEDC shall complete the incorporation of EKEDP SubCo, IE SubCo and IBEDC SubCo within 60 days from December 24, 2024. The sub-companies shall apply for and obtain licences for the intrastate supply and distribution of electricity from OGERC, among other directives. All transfers envisaged by this order shall be completed by June 23, 2025.”
Emmanuel Addeh
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