In compliance with the Electricity Act 2023 (as amended), the Nigerian Electricity Regulatory Commission (NERC) has issued an order to transfer regulatory oversight of the electricity market in Ogun State from the Commission to the Ogun State Electricity Regulatory Commission (OGERC).
With the implementation of the Act so far, seven states, including Edo, Enugu, Ekiti, Imo, Ondo, Oyo and Lagos, have been granted regulatory autonomy over their electricity market.
This is as the EA 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.
NERC, in a public notice on Monday, explained that the government of Ogun State complied with the conditions precedent in the laws, duly notified the Commission and requested for the transfer of regulatory oversight of the intrastate electricity market in Ogun State.
The Commission, therefore, directed Eko Electricity Distribution Company (EKEDP), Ikeja Electric (IE) and Ibadan Electricity Distribution Company (IBEDC) to incorporate subsidiaries: EKEDP SubCo, IE SubCo and IBEDC SubCo respectively to assume responsibilities for intrastate supply and distribution of electricity in Ogun State from EKEDP, IE and IBEDC.
“EKEDP, IE and IBEDC shall complete the incorporation of EKEDP SubCo, IE SubCo and IBEDC SubCo within 60 days from 24th December 2024. The subcompanies shall apply for and obtain licences for the intrastate supply and distribution of electricity from OGERC, among other directives.
“All transfers envisaged by this order shall be completed by 23rd June 2025.
“Recall that with the EA 2023, the Commission retains the role as a central regulator with regulatory oversight on the inter-state/international generation, transmission, supply, trading and system operations” it stated.
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