The Nigerian Electricity Regulatory Commission (NERC), in compliance with the amended Constitution of the Federal Republic of Nigeria (CFRN) and the Electricity Act 2023 (Amended), has issued an order to transfer regulatory oversight of the electricity market in Kogi State from the Commission to the Kogi State Electricity Regulatory Commission (KSERC).
Kogi State becomes the seventh state to get the regulatory autonomy after Enugu, Ekiti, Ondo, Imo, Oyo, and Edo States were authorised to regulate their electricity markets.
With this, these states have established their electricity regulatory agencies and will now oversee the electricity markets within their jurisdictions.
Read also: NERC grants six states authority to regulate electricity markets
The Commission in a transfer Order issued on Wednesday, stated that the Government of Kogi State has complied with the conditions precedent in the laws by duly notifying NERC and requested the transfer of regulatory oversight of the intrastate electricity market in Kogi State.
“Recall that with the Electricity Act 2023, the Commission retains the role as 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,” it stated.
Read also: Imo joins Enugu, Ekiti, and Ondo in electricity market control as NERC grants regulatory autonomy
The NERC in the transfer Order has thereby directed Abuja Electricity Distribution Company (AEDC) to incorporate a subsidiary (AEDC SubCo) to assume responsibilities for the intrastate supply and distribution of electricity in Kogi State from AEDC.
“AEDC shall complete the incorporation of AEDC SubCo within 60 days from 13th September 2024. The sub-company shall apply for and obtain licence for the intrastate supply and distribution of electricity from KSERC, among other directives.
“All transfers envisaged by this order shall be completed by 12th March 2025,” the Order read.
