The Nigerian Electricity Regulatory Commission (NERC) on Tuesday, April 23, revealed that it has transferred regulatory oversight of the electricity market in Ekiti state from the commission to the Ekiti State Electricity Regulatory Bureau (EERB).
According to the commission, the action is in line with the 2023 Electricity Act.
NERC said in a statement: “In compliance with the amended Constitution of the Federal Republic of Nigeria (CFRN) and the Electricity Act 2023 (Amended), the Nigerian Electricity Regulatory Commission (NERC or the Commission) has issued an order to transfer regulatory oversight of the electricity market in Ekiti State from the Commission to the Ekiti State Electricity Regulatory Bureau (EERB).”
The statement recalled that with the EA 2023, the Commission retains the role as a central regulator with regulatory oversight on the inter-state/international generation, transmission, supply, trading and system operations.
The EA said NERC, 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.
The commission noted that based on this, the Government of Ekiti 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 Ekiti State.
The transfer Order by NERC has the following provisions: – Direct Benin Electricity Distribution Company (BEDC) and Ibadan Electricity Distribution Company PLC (IBEDC) to incorporate a subsidiary (BEDC SubCo and IBEDC SubCo) to assume responsibilities for intrastate supply and distribution of electricity in Ekiti State from BEDC and IBEDC.
According to NERC, BEDC and IBEDC shall complete the incorporation of BEDC SubCo and IBEDC SubCo within 60 days from 22 April 2024 and the sub-companies shall apply for and obtain licences for the intrastate supply and distribution of electricity from EERB, among other directives.
All transfers envisaged by this order shall be completed by 22 October 2024, said NERC.
