The Nigerian Electricity Regulatory Commission (NERC) has issued an order to transfer regulatory oversight of the electricity market in Edo State from the Commission to the Edo State Electricity Regulatory Commission (ESERC).
This is in compliance with the amended Constitution of the Federal Republic of Nigeria (CFRN) and the Electricity Act 2023 (Amended).
The Commission, however, retained the role as a central regulator with regulatory oversight on the interstate/international generation, transmission, supply, trading, and system operations, as specified by the EA 2023.
The EA 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, NERC explained that the government of Edo State complied with the conditions precedent in the laws, duly notified it and requested the transfer of regulatory oversight of the intrastate electricity market in Edo State.
Following this development, NERC directed Benin Electricity Distribution Company (BEDC) to incorporate a subsidiary (BEDC SubCo) to assume responsibilities for intrastate supply and distribution of electricity in Edo State from BEDC.
It ordered that BEDC complete the incorporation of BEDC SubCo within 60 days from 21st August 2024.
The Commission said, the sub-company shall apply for and obtain licence for the intrastate supply and distribution of electricity from ESERC, among other directives.
NERC said, “all transfers envisaged by this order shall be completed by 20th February 2025.”
