NERC Transfers Ogun Electricity Market Oversight to OGERC
The Nigerian Electricity Regulatory Commission (NERC) has officially transferred regulatory oversight of Ogun State’s electricity market to the Ogun State Electricity Regulatory Commission (OGERC), in line with the provisions of the amended Electricity Act 2023.
Seven states, including Edo, Enugu, Ekiti, Imo, Ondo, Oyo, and Lagos, have also gained regulatory autonomy over their respective electricity markets under the Act.
This development stems from a provision in the Act that requires any state intending to establish and oversee its intrastate electricity market to formally notify NERC of its processes and request a transfer of regulatory authority to the state’s electricity regulator.
In a public notice issued on Monday, NERC confirmed that Ogun State had met all necessary legal prerequisites, formally notified the Commission, and requested the handover of regulatory oversight for its intrastate electricity market.
Consequently, the Commission instructed Eko Electricity Distribution Company (EKEDP), Ikeja Electric (IE), and Ibadan Electricity Distribution Company (IBEDC) to establish subsidiaries—EKEDP SubCo, IE SubCo, and IBEDC SubCo. These entities will now handle the intrastate supply and distribution of electricity within Ogun State, taking over responsibilities previously managed by their parent companies.
“EKEDP, IE and IBEDC shall complete the incorporation of EKEDP SubCo, IE SubCo, and IBEDC SubCo within 60 days from 24th December 2024. The subcompanies shall apply for and obtain licences for the intrastate supply and distribution of electricity from OGERC, among other directives.
“All transfers envisaged by this order shall be completed by 23rd June 2025.
“Recall that with the EA 2023, the Commission retains the role as a central regulator with regulatory oversight on the inter-state/international generation, transmission, supply, trading and system operations” it stated.
