NERC orders EEDC assets, liabilities delineation

In a move towards implementing Nigeria’s new electricity market structure and deepening its decentralisation, the Nigerian Electricity Regulatory Commission (NERC) has issued an order delineating the assets and liabilities of the Enugu Electricity Distribution Company (EEDC), marking a key milestone in the country’s power sector decentralisation process.
 
 The regulatory instrument, Order No: NERC/2025/073, which will take effect on August 1, 2025, mandates EEDC to unbundle its operations and create state-specific electricity subsidiaries in line with the provisions of the Electricity Act 2023.   
  
This comes as Southeastern states, such as Enugu, continue to assert electricity regulatory autonomy, following the March 2023 constitutional amendment that empowered states to legislate over generation, transmission, and distribution within their borders.

The order provides a clear framework for segregating the assets, liabilities, contractual obligations, and personnel of EEDC, paving the way for the establishment of independent state electricity markets in compliance with the Electricity Act (EA) 2023.
  
This also follows the shift in the regulatory paradigm from a centralised electricity governance model to a federated structure. States are now empowered to establish their electricity markets, regulatory agencies, and generation and distribution systems within their boundaries.

NERC’s latest directive outlines the obligations of EEDC to incorporate subsidiary distribution companies (SubCos) that will assume responsibility for intrastate electricity supply and operations in states that have enacted their electricity laws.

According to the Commission, the delineation process is anchored on key regulatory and commercial objectives to establish a verified and transparent basis for asset transfer between parent DisCos and state-level SubCos, to provide economic and operational data enabling new state regulators to commence tariff setting and performance monitoring.
   
The process would also foster investor confidence through proper documentation and regulatory clarity, to ensure that the delineation process is audit-ready and aligns with long-term market accountability. The order also mandates EEDC to install boundary meters at state borders to distinguish intrastate from interstate electricity networks.