The Nigerian Electricity Regulatory Commission (NERC) has announced a significant transfer of regulatory oversight for the electricity market in Kogi State to the Kogi State Electricity Regulatory Commission (KSERC).
This decision, confirmed in a statement on Wednesday, aligns with the amended Constitution of the Federal Republic of Nigeria and the Electricity Act 2023 (Amended).
Under the provisions of the Electricity Act 2023, NERC will maintain its role as the central regulator for inter-state and international activities related to generation, transmission, supply, trading, and system operations. The Act also stipulates that any state looking to establish and regulate its intrastate electricity market must formally notify NERC and request the transfer of regulatory authority.
NERC noted that the Kogi State Government has met the necessary legal requirements, providing the required notification and formally requesting the transfer of oversight for its intrastate electricity market.
As part of this transition, NERC has directed the Abuja Electricity Distribution Company (AEDC) to create a subsidiary, referred to as AEDC SubCo, which will take over responsibilities for the 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 newly formed subsidiary will be required to apply for and obtain a license for the intrastate supply and distribution of electricity from KSERC.
NERC has set a deadline for all transitions related to this order to be finalized by March 12, 2025.
