The Nigerian Electricity Regulatory Commission (NERC) has handed over regulatory control of the electricity market in Edo State to the Edo State Electricity Regulatory Commission (ESERC).
This decision, announced on Wednesday, aligns with the Electricity Act 2023.
NERC retains its central regulatory role, overseeing inter-state and international electricity generation, transmission, supply, trading, and system operations. However, the Electricity Act 2023 empowers states to establish and regulate intrastate electricity markets, provided they notify NERC and request regulatory authority transfer.
In a post on X, NERC said, “In compliance with the amended Constitution of the Federal Republic of Nigeria (CFRN) and the Electricity Act 2023 (Amended), the Nigerian Electricity Regulatory Commission (“NERC” or the “Commission”) has issued an order to transfer regulatory oversight of the electricity market in Edo State from the Commission to the Edo State Electricity Regulatory Commission (ESERC).
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“Recall that with the EA 2023, 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.
“Based on this, the Government of Edo State complied with the conditions precedent in the laws, duly notified NERC and requested for the transfer of regulatory oversight of the intrastate electricity market in Edo State.”
The Edo State Government has met the necessary conditions, leading to NERC’s order, which directs Benin Electricity Distribution Company (BEDC) to form a subsidiary, BEDC SubCo. This subsidiary will handle intrastate electricity supply and distribution in Edo State, subject to obtaining a license from ESERC within 60 days.
The transfer, expected to be completed by February 20, 2025, marks a significant step towards decentralizing electricity regulation in Nigeria, allowing states to manage their electricity markets more effectively. NERC stated that this move aims to promote more effective regulation and development of the electricity market in Edo State.
NERC stated, “The transfer of regulatory oversight is in line with the Electricity Act 2023 and aims to promote more effective regulation and development of the electricity market in Edo State.”
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