By Ono Yima
The Nigeria Electricity Regulatory Commission (NERC) has transferred the regulatory oversight of the Electricity Market in Enugu State to Enugu Electricity Regulatory Commission (EERC).
NERC did this in reliance on the Electricity Act 2023 (Amended). 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.
It should be noted that Ekiti State had earlier been granted same. The regulatory oversight function is to be performed in Ekiti by Ekiti Electricity Regulatory Board (EERB).
The full details of NERC Approvals, conveying the regulatory function to Enugu State, as with Ekiti State read:
“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 Enugu State from the Commission to the Enugu State Electricity Regulatory Commission.
“With the EA, the Commission retains the role as central regulator with regulatory oversight on the inter-state/international generation, transmission, supply, trading and system operations. 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, the Government of Enugu 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 Enugu State.
“NERC in the Order, made the following provisions: – Direct Enugu Electricity Distribution Company PLC (EEDC) to incorporate a subsidiary (EEDC SubCo) to assume responsibilities for intrastate supply and distribution of electricity in Enugu State from EEDC. – EEDC shall complete the incorporation of EEDC SubCo within 60 days from 22 April 2024 and the subcompany shall apply for and obtain a licence for the intrastate supply and distribution of electricity from EERC, among other directives.
“All transfers envisaged by this order shall be completed by 22 October 2024” the statement ends.
This development has received positive commendations from Nigerians on X and other platforms; with many calling on their state government to apply to NERC for same. They hope that this would bring regulation close to the consumers and also improve power distribution.