NERC DELEGATES ELECTRICITY REGULATION TO EDO
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The Nigerian energy Regulatory Commission has delegated regulatory authority over the energy market in Edo State to the Edo State Electricity Regulatory Commission.
This decision was made in accordance with the modified Constitution of the Federal Republic of Nigeria and the Electricity Act 2023.
NERC announced this on its X account on Wednesday.
According to the NERC, the Commission will continue to serve as a central regulator, overseeing interstate and international generation, transmission, supply, trading, and system operations.
However, the Electricity Act of 2023 requires states that intend to establish and operate intrastate power markets to notify NERC and request a transfer of regulatory authority.
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It was stated that the Edo State Government had met the essential conditions and requested the transfer of regulatory control, resulting in the NERC order.
The ruling authorises the Benin Electricity Distribution Company to establish a subsidiary, BEDC SubCo, to handle intrastate power supply and distribution in Edo State.
BEDC has 60 days to complete the incorporation of BEDC SubCo, after which it will apply for and get an ESERC licence. The transfer is planned to be completed on February 20, 2025.
This decision is viewed as a crucial step towards decentralising power regulation in Nigeria and allowing states to operate their own electricity markets.
NERC stated, “The transfer of regulatory oversight is in line with the Electricity Act 2023 and aims to promote more effective regulation and development of the electricity market in Edo State.”
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