NERC hands Lagos electricity regulation to LASERC

The Nigerian Electricity Regulatory Commission (NERC) has issued an order to transfer regulatory oversight of Lagos State’s electricity market to the Lagos State Electricity Regulatory Commission (LASERC).

This move aligns with the provisions of the amended Constitution of the Federal Republic of Nigeria (CFRN) and the Electricity Act 2023 (EA 2023).

The EA 2023 mandates that states intending to establish and regulate intrastate electricity markets must notify the NERC of their readiness and request the transfer of regulatory authority.

The EA also mandates any state that intends to establish and regulate intrastate electricity markets to deliver a formal notification of its processes and request NERC to transfer regulatory authority over electricity operations in the state to the State Regulator.
According to NERC, the Lagos State Government has met all the legal requirements outlined in the EA 2023 and formally requested the transfer of regulatory oversight.

This move positions LASERC as the primary regulator of intrastate electricity operations within Lagos State.
The transfer process, including all necessary adjustments, is expected to be completed by June 4, 2025.

As part of the order, NERC has directed the two major electricity distribution companies in Lagos, Eko Electricity Distribution Plc (EKEDP) and Ikeja Electric Plc (IE), to incorporate subsidiaries responsible for intrastate electricity supply and distribution in Lagos State.
According to the EA 2023, NERC retains the role of a central regulator with regulatory oversight on inter-state/international generation, transmission, supply, trading, and system operations.

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EKEDP is required to establish a subsidiary, EKEDP SubCo, within 60 days from December 5, 2024, to manage electricity distribution exclusively within the state. Similarly, IE must create a subsidiary, IE SubCo, within the same timeframe. Both subsidiaries will need to obtain operational licenses from LASERC.

“Direct Eko Electricity Distribution Plc (EKEDP) to incorporate a subsidiary (EKEDP SubCo) to assume responsibilities for intrastate supply and distribution of electricity in Lagos State from EKEDP.

“EKEDP shall complete the incorporation of EKEDP SubCo within 60 days from 5th December 2024. The sub company shall apply for and obtain a licence for the intrastate supply and distribution of electricity from LASERC, among other directives,” the Commission stated.
In the same vein, the Commission directed IE to incorporate a subsidiary (IE SubCo) to assume responsibilities for intrastate supply and distribution of electricity in Lagos State from IE.

“IE shall complete the incorporation of IE SubCo within 60 days from 5th December 2024. The sub company shall apply for and obtain a licence for the intrastate supply and distribution of electricity from LASERC, among other directives,” it stated.