The Nigerian Electricity Regulatory Commission (NERC) has announced the transfer of regulatory oversight of the electricity market in Abia State from the Commission to the Abia State Electricity Regulatory Authority (ASERA).
The announcement was contained in a statement on NERC’s official X (formerly Twitter) page on Wednesday.
The Electricity Act (EA) requires any state that intends to manage and regulate its own electricity markets to formally notify NERC and request a transfer of regulatory authority over electricity operations in the state to the State Regulator.
“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 Abia State from the Commission to the Abia State Electricity Regulatory Authority (ASERA).”
The statement noted that the Government of Abia State complied with the conditions precedent in the laws, duly notified NERC, and requested the transfer of regulatory oversight of the intrastate electricity market in Abia State.
A key provision of the order requires the Enugu Electricity Distribution Company (EEDC) to incorporate a subsidiary (EEDC SubCo) to assume responsibilities for intrastate supply and distribution of electricity in Abia State from EEDC.
The order also mandates that EEDC completes the incorporation of EEDC SubCo within 60 days from 25th June 2025.
The subcompany shall apply for and obtain a licence for the intrastate supply and distribution of electricity from ASERA, among other directives. All transfers envisaged by this order shall be completed by December 24, 2025, NERC noted.
In 2024, the Nigerian Electricity Regulatory Commission (NERC) transferred regulatory oversight of the electricity market to state-level regulatory bodies in several states.
These include the Lagos State Electricity Regulatory Commission (LASERC), Ekiti State Electricity Regulatory Bureau (EERB), Ondo State Electricity Regulatory Bureau (OSERB), the Ogun State Electricity Regulatory Commission (OGERC), and the Plateau State Electricity Regulatory Commission (PSERC).
Nigeria’s electricity sector was centrally regulated by the Federal Government through NERC. However, with the amended Constitution (2023) and the Electricity Act 2023, states can now generate, transmit, and distribute electricity within their territories, establish their own electricity markets, and create state regulatory commissions for local oversight.