Electricity decentralization: NERC transfers oversight power to ESERB

The Nigerian Electricity Regulatory Commission (NERC) has decentralized regulatory oversight of the electricity market in Ekiti State by transferring it to the Ekiti State Electricity Regulatory Bureau (EERB), as part of efforts to decentralize the sector. This announcement was made in Order No. NERC/2024/042 issued by NERC on Tuesday, April 22, 2024, signed by the Commission’s Chairman, Sanusi Garba, and the Commissioner for Legal, Licensing, and Compliance, Dafe Akpeneye.

According to NERC, this move is in line with the provisions of the amended Constitution of the Federal Republic of Nigeria (CFRN) and the Electricity Act 2023 (Amended). The Commission clarified that it retains its role as the central regulator, overseeing inter-state/international generation, transmission, supply, trading, and system operations, as stipulated by the Electricity Act 2023.

Under the Electricity Act, any state intending to establish and regulate intrastate electricity markets must formally notify NERC and request the transfer of regulatory authority over electricity operations in the state to the State Regulator. The Government of Ekiti State complied with these requirements, duly notified NERC, and requested the transfer of regulatory oversight of the intrastate electricity market in Ekiti State.

In accordance with 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) responsible for intrastate supply and distribution of electricity in Ekiti State. These subsidiaries are required to be incorporated within 60 days from April 22, 2024, and obtain licenses for intrastate supply and distribution of electricity from EERB, among other directives.

NERC specified that all transfers outlined in the order must be completed by October 22, 2024. It is worth noting that NERC had previously transferred oversight power to the Enugu State Electricity Regulatory Commission (ESERC) on Monday.