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NERC transfers Abia electricity market oversight to state regulator

The Nigerian Electricity Regulatory Commission has officially transferred regulatory oversight of Abia State’s electricity market to the Abia State Electricity Regulatory Authority.

This was disclosed in a statement posted on NERC’s official X (formerly Twitter) account on Wednesday.

The Electricity Act mandates that any state seeking to manage and regulate its own electricity market must formally notify NERC and request the transfer of regulatory authority to the state’s regulatory agency.

“In compliance with the amended Constitution of the Federal Republic of Nigeria (CFRN) and the Electricity Act 2023 (Amended), the Nigerian Electricity Regulatory Commission (“NERC” or the “Commission” has issued an order to transfer regulatory oversight of the electricity market in Abia State from the Commission to the Abia State Electricity Regulatory Authority (ASERA),” statement read.

According to the statement, the Abia State Government met all legal prerequisites, officially informed NERC, and requested the handover of regulatory oversight for the state’s intrastate electricity market.

A central provision of the order requires the Enugu Electricity Distribution Company (EEDC) to set up a subsidiary, known as EEDC SubCo, to handle the intrastate supply and distribution of electricity in Abia State.

It also stipulates that EEDC must complete the incorporation of EEDC SubCo within 60 days from June 25, 2025.

NERC stated that the subsidiary must apply for and obtain a licence from ASERA for the intrastate supply and distribution of electricity, among other directives.

All transfers outlined in the order are to be completed by December 24, 2025.

In 2024, the Nigerian Electricity Regulatory Commission (NERC) transferred regulatory oversight of the electricity market to state-level regulators in several states.

These include the Lagos State Electricity Regulatory Commission, Ekiti State Electricity Regulatory Bureau, Ondo State Electricity Regulatory Bureau, Ogun State Electricity Regulatory Commission, and Plateau State Electricity Regulatory Commission.

The initiative enables faster responses to challenges related to electricity generation, distribution, and supply within each state.