The Nigerian Electricity Regulatory Commission has issued an order to transfer regulatory oversight of the electricity market in Edo State from the commission to the Edo State Electricity Regulatory Commission (ESERC).
According to the commission’s announcement on Wednesday, the action was in accordance with the Electricity Act 2023 (revised) and the revised Constitution of the Federal Republic of Nigeria (CFRN).
It will be recalled that the commission kept its regulatory authority of interstate and international generation, transmission, supply, trading, and system operations along with its position as a central regulator under the EA 2023.
The EA also mandates any state that intends to establish and regulate intrastate electricity markets to deliver a formal notification of its processes and requests NERC to transfer regulatory authority over electricity operations in the state to the State Regulator.
Based on this, NERC noted that the Government of Edo State complied with the conditions precedent in the laws, duly notified NERC and requested for the transfer of regulatory oversight of the intrastate electricity market in the state.
The following clauses are included in the NERC transfer order: – Direct the Benin Electricity Distribution Company (BEDC) to establish a subsidiary (BEDC SubCo) to take over Edo State’s intrastate electricity supply and distribution duties from BEDC.
BEDC will complete the incorporation of BEDC SubCo within 60 days from 21st August 2024.
In addition to following other instructions, the sub-company must apply to ESERC for a license to supply and distribute power inside the state.
By February 20, 2025, all transfers envisioned by the directive will be finished.
