Ekiti gets NERC’s approval to regulate electricity

The Nigerian Electricity Regulatory Commission (NERC) has announced the transfer of regulatory oversight of the electricity market in Ekiti State to the Ekiti State Electricity Regulatory Bureau (EERB).

In an Order issued on Monday night, NERC disclosed that the move is by the amended Constitution of the Federal Republic of Nigeria and the Electricity Act 2023 (Amended).

It explained that under the amended Electricity Act, NERC retains its role as the central regulator with regulatory oversight over inter-state/international generation, transmission, supply, trading, and system operations.

However, it added that any state desiring to establish and regulate intrastate electricity markets must formally notify NERC and request the transfer of regulatory authority over electricity operations within the state. 

“Having met all the prerequisites stipulated by the law, the Government of Ekiti State has complied and officially requested the transfer of regulatory oversight of the intrastate electricity market in Ekiti State.

“NERC’s transfer order includes provisions that directly instruct the Benin Electricity Distribution Company (BEDC) and the Ibadan Electricity Distribution Company PLC (IBEDC) to establish subsidiaries, BEDC SubCo and IBEDC SubCo respectively.

“These subsidiaries will assume the responsibilities of intrastate supply and distribution of electricity in Ekiti State, thereby transferring these roles from BEDC and IBEDC’’, it stated.

According to the Order, BEDC and IBEDC must complete the incorporation of their respective subsidiaries within 60 days from April 22, 2024. 

“Furthermore, the newly formed sub-companies are required to apply for and obtain licenses for the intrastate supply and distribution of electricity from EERB. All transfers outlined in the order are expected to be completed by October 22, 2024’’, NERC said.