WATCH THE VIDEO HERE The Nigerian Electricity Regulatory Commission (NERC) has approved the transfer of regulatory oversight of the electricity market in Lagos State to the Lagos State Government. This was disclosed in a statement seen by Business Post on Thursday, which noted that this is in compliance with the amended Nigerian constitution and the Electricity Act 2023 (Amended), which was signed by President Bola Tinubu last year. NERC issued the order to transfer regulatory oversight of the electricity market in Lagos State from the commission to the Lagos State Electricity Regulatory Commission (LASERC). Recall that with the Electricity Act 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. It 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 electricity regulator. NERC affirmed that Lagos State complied with the conditions precedent in the law and duly notified it and requested for the transfer of regulatory oversight of the intrastate electricity market in Lagos State. With this, NERC has directed Eko Electricity Distribution Plc (EKEDP) to incorporate a subsidiary (EKEDP SubCo) to assume responsibilities for intrastate supply and distribution of electricity in Lagos State from EKEDP. There are two electricity distribution companies serving Lagos customers – EKEPC and Ikeja Electricity Distribution Company (IKEDC). EKEDP shall complete the incorporation of EKEDP SubCo within 60 days from December 5, 2024. The sub-company shall apply for and obtain a licence for the intrastate supply and distribution of electricity from LASERC, among other directives. It also directed Ikeja Electric Plc to incorporate a subsidiary (IE SubCo) to assume responsibilities for intrastate supply and distribution of electricity in Lagos State from IE. IE shall complete the incorporation of IE SubCo within 60 days from December 5, 2024. The sub-company shall apply for and obtain a licence for the intrastate supply and distribution of electricity from LASERC, among other directives. NERC noted that all transfers should be completed by June 4, 2025.
NERC Approves Transfer of Lagos Electricity Market Regulation to LASERC
