NERC Transfers Electricity Market Regulatory Power to Ogun

The move is in compliance with the amended constitution of the Federal Republic of Nigeria (CFRN) and the Electricity Act 2023 (Amended), signed by President Bola Tinubu.

Following this, the commission has now issued an order to transfer regulatory oversight of the electricity market in Ogun State to the local regulator.

Recall that with the Electricity Act 2023, NERC retains the role as a central regulator with regulatory oversight on the inter-state/international generation, transmission, supply, trading and system operations.

The act 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.

Following in the footsteps of Lagos, the Ogun State government 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 Ogun State.

The transfer order by NERC will direct Eko Electricity Distribution Company (EKEDP), Ikeja Electric PLC (IE) and Ibadan Electricity Distribution Company (IBEDC) to incorporate subsidiaries: EKEDP SubCo, IE SubCo and IBEDC SubCo respectively to assume responsibilities for intrastate supply and distribution of electricity in Ogun State from EKEDP, IE and IBEDC.

EKEDP, IE and IBEDC shall complete the incorporation of EKEDP SubCo, IE SubCo and IBEDC SubCo within 60 days from 24th December 2024.

The sub-companies shall apply for and obtain licences for the intrastate supply and distribution of electricity from OGERC, among other directives.

All transfers envisaged by this order shall be completed by June 23, 2025, according to a statement on Monday.

Business Post reports that more states will follow in due course.