The Nigerian Electricity Regulatory Commission (NERC) has issued a directive transferring the regulatory oversight of the electricity market in Ogun State to the newly established Ogun State Electricity Regulatory Commission (OGERC).
This was contained in a public notice on NERC’s official X handle, which stated that “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 Ogun State from the Commission to the Ogun State Electricity Regulatory Commission (OGERC).”
Transfer of Regulatory Oversight of the Electricity Market in Ogun State to OGERC
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… pic.twitter.com/FuRnjfdnhC
— NERC Nigeria (@NERCNG) December 30, 2024
Recall that with the EA 2023, the Commission retains the role of a central regulator with regulatory oversight on the interstate/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.
As a result of this development, the government of Ogun State complied with the conditions precedent in the laws, duly notified NERC and requested the transfer of regulatory oversight of the intrastate electricity market in Ogun State.
Following the request, NERC has directed the 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.
The Commission further stated that EKEDP, IE and IBEDC shall complete the incorporation of EKEDP SubCo, IE SubCo and IBEDC SubCo within 60 days from 24th December 2024.
It also disclosed that the sub-companies shall apply for and obtain licences for the intrastate supply and distribution of electricity from OGERC, among other directives.
According to NERC, all transfers envisaged by this order shall be completed by 23 June 2025.
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