The Federal Government, through the Nigerian Electricity Regulatory Commission (NERC), has officially transferred regulatory oversight of Lagos State’s electricity market to the newly established Lagos State Electricity Regulatory Commission (LASERC).
This move, announced in a statement by NERC on Thursday via X (formerly Twitter), signals a significant shift in Nigeria’s electricity sector, granting Lagos more control over its intrastate energy operations.
Central to this transition is the NERC’s Transfer Order, which details the structural adjustments required to ensure a smooth handover of responsibilities to LASERC.
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What it means for DisCo
Two major electricity distribution companies (DisCos) operating within Lagos, Eko Electricity Distribution Plc (Eko DisCo) and Ikeja Electric Plc (Ikeja DisCo), are at the forefront of this restructuring.
Eko DisCo has been mandated to establish a subsidiary, Eko DisCo’s SubCo, specifically for handling the intrastate supply and distribution of electricity in Lagos State. The incorporation of Eko DisCo’s SubCo must be completed within 60 days from December 5, 2024.
Once incorporated, Eko DisCo SubCo will apply for a license to operate under LASERC’s regulations.
Similarly, Ikeja DisCo is required to create a subsidiary, Ikeja DisCo SubCo, to manage intrastate electricity operations within Lagos. Ikeja DisCo SubCo must also be incorporated within the same 60-day period, after which it will seek licensing from LASERC.
The NERC Order stipulates that all responsibilities, including the incorporation of the subsidiaries and licensing processes, must be finalised by June 4, 2025. This timeline ensures a structured transition, paving the way for LASERC’s comprehensive oversight of Lagos State’s electricity market.
With these measures in place, LASERC is set to assume full control, enabling Lagos State to independently regulate its energy sector and address local challenges more effectively.
Background and legal framework
The transfer of regulatory authority stems from provisions in the amended Nigerian Constitution and the Electricity Act of 2023 (EA 2023).
These legal frameworks empower states to regulate their intrastate electricity markets, provided they notify NERC and meet specific conditions. Lagos State’s government fulfilled all legal requirements, including formal notification to NERC, which triggered this transition.
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While LASERC will now oversee Lagos’ intrastate electricity operations, NERC retains its role as the central regulator for inter-state and international electricity activities.
The commission had previously transferred regulatory oversight of the power market to Oyo, Imo, Edo, Ondo, Enugu, and Ekiti earlier this year.
The latest transfer was on August 21, when the commission issued an order transferring regulatory oversight of the electricity market in Kogi to the state’s electricity regulatory commission (KSERC).
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