The Nigerian Electricity Regulatory Commission (NERC) has announced the transfer of regulatory authority over the electricity market in Edo State to the newly established Edo State Electricity Regulatory Commission (ESERC).
In a statement issued on Wednesday, NERC confirmed that the move aligns with the amended Constitution of the Federal Republic of Nigeria (CFRN) and the Electricity Act 2023 (Amended).
Under the amended legislation, NERC retains its role as the central regulator overseeing inter-state and international electricity generation, transmission, supply, trading, and system operations.
The Electricity Act also requires any state wishing to establish and regulate its own intrastate electricity market to formally notify NERC and request the transfer of regulatory authority to the state’s regulatory body.
NERC noted that the Edo State Government has complied with these legal requirements and officially requested the transfer of regulatory oversight.
As a result, NERC has issued an order for the transition, which includes several key directives:
– The Benin Electricity Distribution Company (BEDC) is instructed to establish a subsidiary, BEDC SubCo, which will take over responsibility for intrastate electricity supply and distribution within Edo State.
– BEDC has been given a 60-day deadline, starting from August 21, 2024, to complete the incorporation of BEDC SubCo.
– The new subsidiary is also required to apply for and obtain a license from ESERC for intrastate electricity operations.
All transfers mandated by the order are expected to be completed by February 20, 2025.
