The Nigerian Electricity Regulatory Commission has officially handed over the regulatory responsibilities for the electricity market in Edo State to the newly established Edo State Electricity Regulatory Commission.
This decision aligns with the provisions of the amended Constitution of the Federal Republic of Nigeria and the recently enacted Electricity Act 2023.
NERC made this announcement via its official X handle on Wednesday, noting that the transfer is part of a broader initiative aimed at decentralizing electricity regulation in Nigeria, empowering states to independently manage their electricity markets.
Despite this shift, NERC will continue to function as the central regulator, maintaining oversight over inter-state and international aspects of electricity generation, transmission, supply, trading, and system operations.
The Electricity Act 2023 requires states interested in establishing and regulating their own intrastate electricity markets to formally notify NERC and request a transfer of regulatory authority.
The Edo State Government, having fulfilled all necessary conditions, submitted such a request, prompting NERC to issue the transfer order.
In compliance with this order, the Benin Electricity Distribution Company is instructed to create a subsidiary, BEDC SubCo, which will be responsible for the intrastate supply and distribution of electricity within Edo State.
BEDC has a 60-day window to complete the incorporation of this subsidiary, which must then obtain a license from the ESERC. The entire transfer process is expected to be finalized by February 20, 2025.
NERC emphasized that “The transfer of regulatory oversight is in line with the Electricity Act 2023 and aims to promote more effective regulation and development of the electricity market in Edo State.”
This development is seen as a crucial step towards enhancing the efficiency and effectiveness of electricity regulation at the state level in Nigeria.
