The Nigerian Electricity Regulatory Commission has transfered regulatory oversight of the electricity market in Edo State to the State Electricity Regulatory Commission (ESERC).
The commission on Wednesday said the move complied with the amended Constitution of the Federal Republic of Nigeria (CFRN) and the Electricity Act 2023 (Amended).
It would be recalled that NERC earlier in the year allowed the Ekiti State to supervise the electricity market in line with the EA 2023. The commission retained the role of 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.
Based on this, NERC noted that the Government of Edo 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 the state.
The transfer Order by NERC has the following provisions: – Direct Benin Electricity Distribution Company (BEDC) to incorporate a subsidiary (BEDC SubCo) to assume responsibilities for intrastate supply and distribution of electricity in Edo State from BEDC.
BEDC will complete the incorporation of BEDC SubCo within 60 days from 21st August 2024.
The sub-company is also expected to apply for and obtain licence for the intrastate supply and distribution of electricity from ESERC, among other directives.
All transfers envisaged by the order will be completed by 20th February 2025.
Micheal has over 5 years experience in digital journalism. He’s a New Media Expert with an interest in Human Development and Global Politics.
