The Nigerian Electricity Regulatory Commission (NERC) has announced an order to transfer the regulatory oversight of the electricity market in Edo State to the Edo State Electricity Regulatory Commission (ESERC).
The commission stated on Wednesday that this decision aligns with the amended Constitution of the Federal Republic of Nigeria (CFRN) and the Electricity Act 2023 (Amended).
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Under the Electricity Act 2023, NERC continues to serve as the central regulator overseeing interstate and international aspects of generation, transmission, supply, trading, and system operations.
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The Act also requires states that wish to regulate their own intrastate electricity markets to formally notify NERC, which then facilitates the transfer of regulatory authority to the state’s own regulatory body.
In response, NERC acknowledged that the Edo State Government met the legal requirements, formally notified NERC, and requested the transfer of regulatory oversight for the intrastate electricity market in the state.
The NERC transfer order includes the following provisions:
– Direct Benin Electricity Distribution Company (BEDC) to establish a subsidiary, BEDC SubCo, which will take over responsibilities for the intrastate supply and distribution of electricity in Edo State from BEDC.
– BEDC is required to complete the incorporation of BEDC SubCo within 60 days, starting from August 21, 2024.
– The new subsidiary must also apply for and secure a license for intrastate electricity supply and distribution from ESERC, among other directives.
All actions outlined in the order are expected to be completed by February 20, 2025.
