The Nigerian Electricity Regulatory Commission (NERC) has officially transferred regulatory oversight of the electricity market in Edo State to the Edo State Electricity Regulatory Commission.
This transfer aligns with the amended Constitution of the Federal Republic of Nigeria and the Electricity Act of 2023.
NERC announced this decision on its X (formerly Twitter) account on Wednesday.
The commission clarified that it will continue to serve as the central regulator, overseeing inter-state and international generation, transmission, supply, trading, and system operations.
However, under the Electricity Act 2023, states wishing to establish and regulate intrastate electricity markets must notify NERC and request the transfer of regulatory authority.
The Edo State Government has met the required conditions and formally requested this transfer, leading to NERC’s order.
This order instructs the Benin Electricity Distribution Company to establish a subsidiary, BEDC SubCo, which will be responsible for intrastate supply and distribution of electricity in Edo State.
BEDC has 60 days to complete the formation of BEDC SubCo, which must then apply for and obtain a license from the Edo State Electricity Regulatory Commission (ESERC). The transfer is anticipated to be finalized by February 20, 2025.
This development is viewed as a significant step toward decentralizing electricity regulation in Nigeria, enabling states to take control of their electricity markets.
NERC noted that the transfer of regulatory oversight aligns with the Electricity Act 2023 and aims to foster more effective regulation and development of the electricity market in Edo State.
