The Nigerian Electricity Regulatory Commission (NERC) yesterday approved the request by the Abia state government to get full autonomy of its electricity market
The historic approval is mandated by the Nigerian Electricity Act of 2023, and many states are also making similar requests.
“In compliance with the amended Constitution of the Federal Republic of Nigeria and the Electricity Act 2023 (Amended), the Nigerian Electricity Regulatory Commission (NERC) has issued an order to transfer regulatory oversight of the electricity market in Abia State from the Commission to the Abia State Electricity Regulatory Authority (ASERA),” the regulator said.
According to the Electricity Act, NERC remains the regulator for the interstate and national-level electricity matters, while state-level autonomy can be ceded to states that meet the quota.
“Based on this, the Government of Abia State complied with the conditions precedent in the laws, duly notified NERC and requested for the transfer of regulatory oversight of the intrastate electricity market in Abia State,” it stated.
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Transfer Order
The apex electricity regulator, in a statement, spelled out the modalities of the transfer of regulatory autonomy to the Abia state government by the Enugu Energy Distribution Company (EEDC).
“Direct Enugu Electricity Distribution Company (EEDC) to incorporate a subsidiary (EEDC SubCo) to assume responsibilities for intrastate supply and distribution of electricity in Abia State from EEDC,” it stated.
The sub-company shall apply for and obtain a licence for the intrastate supply and distribution of electricity from ASERA, among other directives. All transfers envisaged by this order shall be completed by December 24, 2025, it added.
Nerc expects the incorporation of a subsidiary to happen within 60 days.
