The Nigeria Electricity Regulatory Commission (NERC) has officially handed over electricity regulatory oversight to the Imo State government. This significant move follows a recent order by the Commission, marking a new chapter in the state’s electricity market management.
In line with the amended Constitution of the Federal Republic of Nigeria and the Electricity Act (EA) 2023, NERC issued an order to transfer regulatory oversight of the electricity market in Imo State to the newly established State Electricity Regulatory Commission (ISERC). The EA 2023 designates NERC as the central regulator, maintaining oversight on inter-state and international electricity generation, transmission, supply, trading, and system operations.
The EA 2023 also provides a framework for states to establish and regulate their intrastate electricity markets. According to the Act, states intending to do so must formally notify NERC of their processes and request the transfer of regulatory authority. Imo State complied with these conditions, formally notifying NERC and requesting the transfer of oversight.
Provisions of the Transfer Order
NERC’s transfer order includes several key provisions to ensure a smooth transition:
- Direct Enugu Electricity Distribution Company (EEDC) to incorporate a subsidiary (EEDC SubCo) – This subsidiary will assume responsibility for the intrastate supply and distribution of electricity in Imo State.
- Timeline for incorporation – EEDC must complete the incorporation of EEDC SubCo within 60 days of June 27, 2024.
- Licensing and regulatory compliance – The newly formed EEDC SubCo must apply for and obtain a license from ISERC for the intrastate supply and distribution of electricity.
All transfers specified in this order must be completed by December 31, 2024.
Implications for Imo State
This transfer of regulatory oversight is a major step for Imo State, enabling local control over its electricity market. Establishing ISERC is expected to enhance the efficiency and responsiveness of electricity supply and distribution within the state. Imo State can better address local electricity issues and implement policies tailored to its specific needs by having regulatory authority closer to the service point.
The role of EEDC
The Enugu Electricity Distribution Company (EEDC) plays a crucial role in this transition. By creating a subsidiary dedicated to Imo State’s electricity market, EEDC will facilitate a seamless shift from NERC to ISERC oversight. The EEDC SubCo will ensure that the state’s electricity supply and distribution meet regulatory standards and serve the needs of the local population.
The transfer of electricity regulatory oversight from NERC to the Imo State government represents a landmark development in Nigeria’s energy sector. It reflects the broader goals of the Electricity Act 2023 to decentralize electricity regulation, promote local governance, and enhance the efficiency of electricity markets across the country.
As Imo State takes on this new regulatory role, the collaboration between NERC, ISERC, and EEDC will be critical to a successful transition. This move is expected to pave the way for improved electricity services, greater local accountability, and a more robust energy infrastructure in Imo State.
With the deadline for completing all transfers set for December 31, 2024, stakeholders are poised to work diligently to meet the requirements and ensure that the people of Imo State benefit from this significant regulatory shift.