By ABAH SUNDAY, Abuja
The Nigerian Electricity Regulatory Commission (NERC) has announced the transfer of regulatory oversight of the electricity market in Ekiti State from the Commission to the Ekiti State Electricity Regulatory Bureau (EERB).
NERC made this announcement via a public notice released Tuesday, stating that the move was in compliance with the amended Constitution of the Federal Republic of Nigeria (CFRN) and the Electricity Act 2023 as amended.
NERC maintained the Electricity Act allows its to retain the role as central regulator with regulatory oversight on the inter-state/international generation, transmission, supply, trading and system operations.
Its stated that Electricity 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.
According to the Commission, the government of Ekiti State, in this regard, complied with the conditions precedent in the laws, by duly notifying the Commission and requesting for the transfer of regulatory oversight of the intrastate electricity market in the State.
By this order, NERC has directed Benin Electricity Distribution Company (BEDC) and Ibadan Electricity Distribution Company PLC, IBEDC, to incorporate a subsidiary, BEDC SubCo, and, IBEDC SubCo, to assume responsibilities for intrastate supply and distribution of electricity in Ekiti State from BEDC and IBEDC.
“BEDC and IBEDC shall complete the incorporation of BEDC SubCo and IBEDC SubCo within 60 days from 22 April 2024 and the sub-companies shall apply for and obtain licences for the intrastate supply and distribution of electricity from EERB, among other directives.
“All transfers envisaged by this order shall be completed by 22 October 2024,” the notice reads in part.
The transfer exercise appears to be ongoing as this is coming barely 24 hours after same was announced of Enugu Electricity Regulatory Commission, EERC, which is to regulate the electricity market in Enugu State.