- The Nigerian Electricity Regulatory Commission (NERC) has officially transferred the oversight of Ekiti State’s electricity market.
- The move stems from constitutional amendments signed into law on March 17, 2023, which shifted certain powers from the federal to state governments.
The Nigerian Electricity Regulatory Commission (NERC) has officially transferred the oversight of Ekiti State’s electricity market to the Ekiti State Electricity Regulatory Bureau (EERB).
NERC outlined the transfer process, aligning with the broader legislative changes under the amended Electricity Act 2023, which led to the official announcement made through an order yesterday.
The move also stems from constitutional amendments signed into law on March 17, 2023, which shifted certain federal and state governments’ powers, allowing them to independently manage electricity generation, transmission, and distribution within their jurisdictions.
Set to take effect on May 1, 2024, this move symbolizes a broader decentralization effort within Nigeria’s power sector, influenced by recent legislative amendments under the Electricity Act 2023.
Ibadan Electricity Distribution PLC (IBEDC) also has a 60-day window from the order’s effective date to establish IBEDC SubCo and delineate the geographic boundaries of Ekiti’s electricity network. This involves installing boundary meters at all points where the network transitions from Ekiti State to neighbouring regions, ensuring a clear operational demarcation.
Furthermore, IBEDC SubCo is required to apply for and obtain a license from the newly empowered EERB for its operations within the state. The EERB now holds the exclusive authority to set end-user electricity tariffs in Ekiti State.
These tariffs will determined based on local economic conditions and operational costs and are to be more closely aligned with the needs and capabilities of the state’s residents and businesses.
However, this decentralization effort by NERC, as mandated by the latest legislative amendments, is seen as a pivotal move towards enhancing the sustainability and responsiveness of Nigeria’s electricity supply industry.
This transfer of regulatory powers is expected to foster greater efficiency, accountability, and responsiveness in the management of electricity services in Ekiti State.