By SUNDAY ABBA, Abuja
The Nigerian Electricity Regulatory Commission (NERC or the Commission)
has issued an order to transfer regulatory oversight of the electricity market in Oyo State from the Commission to the Oyo State Electricity Regulatory Commission (OSERC).
A statement by the Commission Tuesday said the move was in compliance with the amended Constitution of the Federal Republic of Nigeria, CFRN, and the Electricity Act (EA) 2023 as Amended.
“Recall 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 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 Oyo 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 Oyo State,” NERC explained.
Accordingly, NERC made the transfer order with the following provisions:
— that Ibadan Electricity Distribution Company (IBEDC) shall incorporate a subsidiary (IBEDC SubCo) to assume responsibilities for intrastate supply and distribution of electricity in Oyo State from IBEDC.
— that IBEDC shall complete the incorporation of IBEDC SubCo within 60 days from 6th August 2024. The sub-company shall apply for and obtain licence for the intrastate supply and distribution of electricity from OSERC among other directives.
All transfers envisaged by the order, according to the statement, shall be completed by 5th February 2025.