The Nigerian Electricity Regulatory Commission has transferred electricity regulatory authority to the Ogun State Electricity Regulatory Commission within the state’s jurisdictions.
In a statement on Monday, NERC confirmed that this move aligns with the amended Nigerian Constitution and the Electricity Act 2023, as amended.
The new Electricity Act 2023 decentralizes the supply and regulation of electricity to sub-national governments, ending the decades-long centralization that has hindered the growth of the sector.
Under the Act, the NERC maintains its role as the central regulator, overseeing interstate and international generation, transmission, supply, trading, and system operations.
The Act also requires any state wishing to establish and regulate intrastate electricity markets to formally notify NERC and request the transfer of regulatory authority over electricity operations within the state.
NERC confirmed that Ogun State had met the necessary legal conditions, notified the Commission, and requested the transfer of regulatory oversight for the intrastate electricity market in the state.
The commission stated, “The Transfer Order by NERC has the following provisions: Direct Eko Electricity Distribution Company (EKEDP), Ikeja Electric PLC (IE) and Ibadan Electricity Distribution Company (IBEDC) to incorporate subsidiaries: EKEDP SubCo, IE SubCo and IBEDC SubCo, respectively, to assume responsibilities for intrastate supply and distribution of electricity in Ogun State from EKEDP, IE and IBEDC.
“EKEDP, IE and IBEDC shall complete the incorporation of EKEDP SubCo, IE SubCo and IBEDC SubCo within 60 days from December 24, 2024. The sub-companies shall apply for and obtain licences for the intrastate supply and distribution of electricity from OGERC, among other directives. All transfers envisaged by this order shall be completed by June 23, 2025.”
