The Nigerian Electricity Regulatory Commission (NERC) has transferred regulatory oversight of the electricity market in Niger State to the Niger State Electricity Regulatory Commission (NSERC) in compliance with the Electricity Act 2023.
Under the Electricity Act, 2023, the commission retains its role as a central regulator with regulatory oversight on the inter-state/international generation, transmission, supply, trading and system operations.
The Act also mandates any state that intends to establish and regulate intra-state 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, Niger State complied with the conditions precedent in the laws, duly notified NERC and requested for the transfer of regulatory oversight of the intra-state electricity market in Niger State.
The transfer order by NERC directed the Abuja Electricity Distribution (AEDC) to incorporate a subsidiary to assume responsibilities for intra-state supply and distribution of electricity in Niger State from the AEDC.
Furthermore, it directed the AEDC to complete the incorporation of its subsidiary within 60 days from January 10 2025, adding that “the subsidiary shall apply for and obtain a licence for the intra-state supply and distribution of electricity from NSERC.”
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In a related development, the NERC had directed the Ibadan Electricity Distribution Company (IBEDC) to incorporate a subsidiary to assume responsibilities for intra-state supply and distribution of electricity in Oyo State from the IBEDC.
The commission mandated the IBEDC to complete the incorporation of subsidiary within 60 days from January 10, 2025. The subsidiary shall apply for and obtain licence for the intra-state supply and distribution of electricity from NSERC, among other directives.
“All transfers envisaged by this order shall be completed by July 9, 2025. Further information is available on the official website,” the NERC stated.
