NERC Grants Niger State Control of Electricity Market Regulation

The Nigerian Electricity Regulatory Commission (NERC) has issued an order transferring regulatory oversight of Niger State’s electricity market to the Niger State Electricity Regulatory Commission (NSERC).

This decision aligns with the amended Constitution of the Federal Republic of Nigeria (CFRN) and the revised Electricity Act 2023.

Niger State joins Enugu, Ekiti, Ondo, Imo, Oyo, Kogi, and Edo States, which have also gained regulatory autonomy over their electricity markets. These states have now established their electricity regulatory agencies to govern operations within their boundaries.

A transfer order from NERC, dated Friday, confirmed that Niger State fulfilled all legal requirements, formally notified NERC, and requested the transfer of regulatory control over its intrastate electricity market.

The Electricity Act mandates that any state wishing to establish and regulate its intrastate electricity market must notify NERC and formally request the transfer of authority to the state’s regulatory agency, in this case, NSERC.

“The EA also mandates any state that intends to establish and regulate intrastate electricity markets to deliver a formal notification of its processes and requests NERC to transfer regulatory authority over electricity operations in the state to the State Regulator,” NERC said.

Based on this, the Government of Niger 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 Niger State.”

NERC directed the Abuja Electricity Distribution Company (AEDC) to incorporate a subsidiary (AEDC SubCo) to take over the duties of supplying and distributing electricity within Niger state from AEDC.

The commission said the incorporation of the subsidiary must be completed within 60 days starting from January 10, adding that the subsidiary must apply for and obtain a licence for intrastate electricity supply and distribution from Niger State Electricity Regulatory Commission (NSERC).

“Direct Ibadan Electricity Distribution Company Plc (IBEDC) to incorporate a subsidiary (IBEDC SubCo) to assume responsibilities for intrastate supply and distribution of electricity in Niger State from IBEDC,” NERC said.

“IBEDC shall complete the incorporation of IBEDC SubCo within 60 days from 10th January 2024. The subcompany shall apply for and obtain licence for the intrastate supply and distribution of electricity from NSERC, among other directives.”

According to the Commission, all transfers envisaged by the order must be completed by July 9.