The Nigerian Electricity Regulatory Commission (NERC) has issued an order to transfer the regulatory oversight of the electricity market in Edo State from NERC to the Edo State Electricity Regulatory Commission (ESERC).
According to a statement from NERC on Wednesday, this decision aligns with the amended Constitution of the Federal Republic of Nigeria (CFRN) and the Electricity Act 2023 (Amended).
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. The Act also stipulates that any state wishing to establish and regulate its intrastate electricity market must formally notify NERC and request the transfer of regulatory authority to the state regulator.
In this case, NERC confirmed that the Edo State Government has met the legal requirements, officially notified NERC, and requested the transfer of regulatory oversight for the intrastate electricity market in the state.
The transfer order includes the following provisions:
– Direct Benin Electricity Distribution Company (BEDC) to establish a subsidiary, BEDC SubCo, responsible for the intrastate supply and distribution of electricity in Edo State.
– BEDC must complete the incorporation of BEDC SubCo within 60 days from 21st August 2024.
– The subsidiary is required to apply for and obtain a license for intrastate supply and distribution of electricity from ESERC, among other directives.
All transfers outlined in the order are to be completed by 20th February 2025.
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