NERC transfers regulatory oversight to Enugu State Electricity Regulatory Commission
The National Electricity Regulatory Commission has issued an order to transfer the regulatory oversight of the electricity market in Enugu state from the commission to the Enugu State Electricity Regulatory Commission.
This was disclosed in a statement by NERC in a post on its official X handle on Monday.
According to the statement, the transfer was done in compliance with the amended Constitution of the Federal Republic of Nigeria and the Electricity Act 2023.
In the statement, NERC stated that it however retains its role as the central regulatory oversight on interstate and international generation and transmission.
The statement reads “The Nigerian Electricity Regulatory Commission (NERC or the Commission) has issued an order to transfer regulatory oversight of the electricity market in Enugu State from the Commission to the Enugu State Electricity Regulatory Commission.
“With the EA, the Commission retains the role as a central regulator with regulatory oversight on the inter-state/international generation, transmission, supply, trading, and system operations.
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.”
It added, that Enugu state had formally applied and requested for the transfer of regulatory oversight of the electricity market and had agreed to adhere to the regulatory condition of NERC.
“Based on this, the Government of Enugu 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 Enugu State.
“NERC in the Order, made the following provisions: – Direct Enugu Electricity Distribution Company PLC (EEDC) to incorporate a subsidiary (EEDC SubCo) to assume responsibilities for intrastate supply and distribution of electricity in Enugu State from EEDC.
– EEDC shall complete the incorporation of EEDC SubCo within 60 days from 22 April 2024 and the sub-company shall apply for and obtain a licence for the intrastate supply and distribution of electricity from EERC, among other directives.
All transfers envisaged by this order shall be completed by 22 October 2024,” NERC stated.
The new Regulation requires that the Enugu Electricity Distribution Company PLC is required to set up a subsidiary, known as EEDC SubCo, by the Companies and Allied Matters Act.
This measure is to establish an autonomous and well-defined electricity distribution framework within the State, enhancing management and regulatory oversight.
