Mkpoikana Udoma
Port Harcourt — In a landmark move, the Nigerian Electricity Regulatory Commission, NERC, has transferred regulatory oversight of the electricity market in Edo State to the Edo State Electricity Regulatory Commission, ESERC.
The move aligns with the amended Constitution of the Federal Republic of Nigeria and the Electricity Act 2023 (Amended).
The transfer order, issued by NERC, directs Benin Electricity Distribution Company, BEDC, to incorporate a subsidiary, BEDC SubCo, to assume responsibilities for intra-state supply and distribution of electricity in Edo State.
According to NERC, BEDC has 60 days to complete the incorporation, and the subcompany must obtain a license from ESERC for intra-state supply and distribution of electricity.
The transfer is expected to be completed by February 20, 2025, a development which marks a significant milestone in the implementation of the Electricity Act 2023, which mandates states to establish and regulate intra-state electricity markets.
With this transfer, ESERC will assume regulatory oversight of the intrastate electricity market in Edo State, while NERC retains its role as a central regulator with regulatory oversight on the inter-state/international generation, transmission, supply, trading and system operations.
The Electricity Act (2023) 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.
Based on this, the Government of Edo 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 Edo State.
