Niger State, on Friday, officially joined the ranks of Imo, Enugu, Ekiti, Ondo, Oyo, Edo, Kogi, and Ogun States as the latest to regulate its electricity market.
The development followed an order issued by the Nigerian Electricity Regulatory Commission (NERC), which granted the newly established Niger State Electricity Regulatory Commission (NSERC) oversight of the electricity sector within the state.
THE WHISTLER recalls that states like Imo, Enugu, Ekiti, Ondo, Oyo, Edo Kogi, and Ogun States had previously secured the NERC’s approvals to regulate electricity markets in their various states.
This was in accordance with the recently amended Constitution of the Federal Republic of Nigeria and the Electricity Act 2023.
According to the commission, the regulations stipulate that while NERC remains the central regulator for inter-state and international electricity operations, states are empowered to oversee their intra-state electricity markets upon formal request and compliance with regulatory processes.
NERC stated that the Niger State Government had formally notified it of its intention to take on the regulatory role.
The Order, which was tagged: “Transfer of Regulatory Oversight of the Electricity Market in Niger State to NSERC”, reads: “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 Niger State from the Commission to the Niger State Electricity Regulatory Commission (NSERC).
” Recall that with the EA 2023, 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.
“Based on this, the Government of Niger 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 Niger State.
” The transfer Order by NERC has the following provisions: – Direct Abuja Electricity Distribution Plc (AEDC) to incorporate a subsidiary (AEDC SubCo) to assume responsibilities for intrastate supply and distribution of electricity in Niger State from AEDC. – AEDC shall complete the incorporation of AEDC SubCo within 60 days from 10th January 2024.
” The sub-company shall apply for and obtain a licence for the intrastate supply and distribution of electricity from NSERC, among other directives. – Direct Ibadan Electricity Distribution Company Plc (IBEDC) to incorporate a subsidiary (IBEDC SubCo) to assume responsibilities for intrastate supply and distribution of electricity in Niger State from IBEDC. – IBEDC shall complete the incorporation of IBEDC SubCo within 60 days from 10th January 2024.
“The sub-company shall apply for and obtain a licence for the intrastate supply and distribution of electricity from NSERC, among other directives. All transfers envisaged by this order shall be completed by July 9, 2025”.
