NERC transfers regulatory autonomy to Lagos state government

The Nigerian Electricity Regulatory Commission (NERC) has issued an order to transfer regulatory oversight of the electricity market in Lagos State from the Commission to the Lagos State Electricity Regulatory Commission (LASERC).

This was done in compliance with the amended Constitution of the Federal Republic of Nigeria (CFRN) and the Electricity Act 2023 (Amended).

Lagos State became one of the states to get regulatory autonomy after Enugu, Ekiti, Ondo, Imo, Oyo, Kogi, 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.

The Commission in a transfer Order seen on Thursday, stated that the Government of Lagos 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 Lagos 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.

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“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.

The NERC in the transfer Order has thereby directed Ikeja Electricity Distribution Company (IE) to incorporate a subsidiary (IE SubCo) to assume responsibilities for the intrastate supply and distribution of electricity in Lagos State from IE.

The Order read: “Ikeja Electric Plc is hereby directed to incorporate a subsidiary under the Companies and Allied Mailers Act for the assumption of responsibilities for intrastate supply and distribution of electricity in Lagos State from IE.

“IE shall complete the incorporation of lE SubCo within 60 days from the effective date of this Order and, IE SubCo shall apply for and obtain a licence for the intrastate supply and distribution of electricity from LASERC.

“lE shall identify the actual geographic boundaries of its distribution zone and carve out its network in Lagos State as a standalone network with the installation of boundary meters at all border points where the network crosses from Lagos State into another state.”