The Nigerian Electricity Regulatory Commission (NERC) has issued an order transferring regulatory oversight of the electricity market in Kogi State from NERC to the Kogi State Electricity Regulatory Commission (KSERC).
In a statement released on Wednesday, NERC explained that this action aligns with the amended Constitution of the Federal Republic of Nigeria and the Electricity Act 2023 (Amended).
Under the Electricity Act 2023, NERC will continue to serve as the central regulator overseeing inter-state and international generation, transmission, supply, trading, and system operations.
The Act also requires any state wishing to establish and regulate its own intrastate electricity market to formally notify NERC and request the transfer of regulatory authority to the state regulator.
In response, NERC confirmed that the Kogi State Government has met all legal requirements, notified NERC, and requested the transfer of regulatory oversight for the intrastate electricity market in Kogi State.
NERC’s transfer order includes directing the Abuja Electricity Distribution Company (AEDC) to create a subsidiary, AEDC SubCo, to handle intrastate supply and distribution of electricity in Kogi State.
AEDC is expected to complete the incorporation of AEDC SubCo within 60 days from September 13, 2024.
“The sub-company shall apply for and obtain licence for the intrastate supply and distribution of electricity from KSERC, among other directives.
“All transfers envisaged by this order shall be completed by 12th March 2025,” NERC added.