The Constitution Federal Republic of Nigeria (CFRN) through the Nigerian Electricity Regulatory Commission (NERC) has issued an order transferring regulatory oversight of the electricity market in Ogun State to the Ogun State Electricity Regulatory Commission (OGERC).
This was made known in a statement on their official X (Twitter) page on Monday.
This initiative follows the Federal Republic of Nigeria (CFRN) and the Electricity Act 2023 in compliance with the amended Constitution and under the provisions of the Electricity Act 2023, NERC retains its role as the central regulator with oversight over inter-state and international electricity generation, transmission, supply, trading, and system operations.
The act further requires that any state seeking to establish and regulate its intrastate electricity market must formally notify NERC of its processes and request the transfer of regulatory authority to the state’s regulatory body.
Following this mandate, Ogun State government fulfilled the legal requirements, formally notified NERC, and requested the transfer of regulatory oversight for the intrastate electricity market within the state.
NERC has instructed that the distribution companies must complete the incorporation of these subsidiaries within 60 days from December 24, 2024, and apply for the necessary licenses from OGERC. The units are required to obtain the appropriate licenses to operate under the new regulatory framework by June 23, 2025.
Key Provisions Highlighted
- Directive to Distribution Companies: Eko Electricity Distribution Company (EKEDP), Ikeja Electric PLC (IE), and Ibadan Electricity Distribution Company (IBEDC) are directed to incorporate subsidiaries—namely EKEDP SubCo, IE SubCo, and IBEDC SubCo, respectively. These subsidiaries will assume responsibility for the intrastate supply and distribution of electricity in Ogun State.
- Timeline for Incorporation and Licensing: EKEDP, IE, and IBEDC must complete the incorporation of EKEDP SubCo, IE SubCo, and IBEDC SubCo within 60 days from December 24, 2024. The subsidiaries must also apply for and obtain the necessary licences for intrastate electricity supply and distribution from OGERC, in accordance with the directives.
All transfers outlined in this order must be completed by June 23, 2025.
What you should know
- In 2024, the Nigerian Electricity Regulatory Commission (NERC) transferred regulatory oversight to regional bodies across several states, including the Lagos Electricity Regulatory Commission (LASERC), Ekiti State Electricity Bureau (EERB), and Ondo State Electricity Bureau (OSERB) as reported by Nairametrics.
- This shift aims to improve efficiency by decentralizing management, enabling more localized oversight, and ensuring quicker responses to regional electricity needs.
- The objective is to improve operations and foster better regulation at the state level.
