Ondo gets the nod to regulate state electricity market

The Nigerian Electricity Regulatory Commission (NERC), Tuesday, issued an order transferring regulatory oversight of the electricity market in Ondo State to the newly established Ondo State Electricity Regulatory Bureau (OSERB).

According to NERC, the move was by the amended Constitution of the Federal Republic of Nigeria and the Electricity Act 2023 (Amended).

The commission explained that under the amended legislation, NERC will retain its position as the central regulator overseeing inter-state and international generation, transmission, supply, trading, and system operations in the country.

It added that any state that wishes to establish and regulate intrastate electricity markets is required to formally notify NERC and request the transfer of regulatory authority.

In response to these requirements, the Government of Ondo State diligently fulfilled all necessary conditions as stipulated by the law. It officially notified NERC of its intent and requested the transfer of regulatory oversight of the intrastate electricity market in Ondo State to OSERB.

To this end, NERC has issued a transfer order outlining the specifics of the transition. One of the key provisions directs the Benin Electricity Distribution Company (BEDC) to establish a subsidiary, BEDC SubCo, which will take charge of intrastate supply and distribution of electricity in Ondo State.

According to the transfer Order, BEDC is mandated to complete the incorporation of BEDC SubCo within 60 days from 22 April 2024. 

To this end, the newly formed subsidiary will be required to apply for and obtain a license for the intrastate supply and distribution of electricity from OSERB. All transfers envisaged by this order are expected to be completed by 22 October 2024