The Nigerian Electricity Regulatory Commission (NERC) has ordered the transfer of regulatory oversight of the electricity market in Oyo State to Oyo State Electricity Regulatory Commission (OSERC).
This is in compliance with the amended Constitution of the Federal Republic of Nigeria (CFRN) and the Electricity Act 2023 (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.
NERC said, 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.
The Commission said, 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.
The transfer Order by NERC has the following provisions:
“Direct Ibadan Electricity Distribution Company (IBEDC) to incorporate a subsidiary (IBEDC SubCo) to assume responsibilities for intrastate supply and distribution of electricity in Oyo State from IBEDC.
“IBEDC shall complete the incorporation of IBEDC SubCo within 60 days from 6th August 2024. The subcompany shall apply for and obtain licence for the intrastate supply and distribution of electricity from OSERC, among other directives.
“All transfers envisaged by this order shall be completed by 5th February 2025”, it said.
