Edo State Government has said that the granting of approval to set up its own Electricity Regulatory Commission (ESERC) by the National Electricity Regulatory Commission (NERC) would boost the socio-economics development of the state.
Kelvin Uwaibi, managing director Edo State Investment Promotion Office (ESIPO), made the remarks while speaking to newsmen in Benin City.
Uwaibi, who is also the secretary of the Edo State Ease of Doing Business Council, opined that the approval by NERC for the establishment of Edo State Electricity Regulatory Commission (ESERC) as the sole regulator for the state’s electricity market was a significant milestone in the ease of doing business in Edo State.
BusinessDay recalls that NERC had on August 21, 2024 mandated the Benin Electricity Distribution Plc (BEDC) to establish a subsidiary company, BEDC SubCo, to handle the intrastate supply and distribution of electricity in Edo State.
He noted that with the establishment, BEDC SubCo would operate under the regulatory oversight of ESERC.
He said it would ensure that electricity distribution is more responsive to the unique demands of the state’s economy.
According to him, this development is a crucial step in the state government’s efforts to address the electricity needs of Edo State, particularly businesses such as manufacturers as well as the electricity market itself.
“The transfer of regulatory oversight from the Nigerian Electricity Regulatory Commission (NERC) to ESERC is a direct result of recent constitutional amendments and the provisions of the Electricity Act 2023.
“With the new regulatory framework, Edo State now has the authority to tailor its electricity policies to meet its specific needs, leading to improve efficiency, reliability, and cost-effectiveness in power supply.
“This is expected to stimulate economic growth, attract investments, and enhance the overall business environment in the state.
“Businesses are our major concern. As government, we are determined to create that enabling environment where businesses thrive”,he said.
The ESIPO boss posited that the establishment of ESERC also grants the state the power to determine its own end-user tariff methodology, independent of NERC’s influence.
Uwaibi added that the localized tariff-setting was expected to lead to more competitive pricing, benefiting both consumers and businesses.
He also added that the transfer of regulatory oversight to ESERC is a significant step towards a more efficient and responsive electricity market in Edo State, paving the way for economic growth and improved ease of doing business.
