The Nigerian Electricity Regulatory Commission (NERC) has officially transferred regulatory oversight of the electricity market in Edo State to the newly established Edo State Electricity Regulatory Commission (ESERC).
This decision aligns with the amended Constitution of the Federal Republic of Nigeria and the Electricity Act 2023, as disclosed by NERC on its X handle on Wednesday.
While NERC will continue to function as the central regulator with authority over inter-state and international electricity generation, transmission, supply, trading, and system operations, the Electricity Act 2023 mandates that states wishing to establish and regulate their intrastate electricity markets must notify NERC and request the transfer of regulatory authority.
The Edo State Government complied with these requirements and requested the transfer, prompting NERC to issue an order. This order directs the Benin Electricity Distribution Company (BEDC) to establish a subsidiary, BEDC SubCo, which will take over the responsibilities for intrastate supply and distribution of electricity within Edo State.
BEDC has been given 60 days to complete the incorporation of BEDC SubCo, which will then need to apply for and obtain a license from ESERC. The entire transfer process is expected to be finalized by February 20, 2025.
This development is seen as a significant step toward decentralizing electricity regulation in Nigeria, enabling states to have greater control over their electricity markets.
NERC stated, “The transfer of regulatory oversight is in line with the Electricity Act 2023 and aims to promote more effective regulation and development of the electricity market in Edo State.”
