NERC transfer regulatory oversight to Kogi electricity commission

The Nigerian Electricity Regulatory Commission (NERC) has officially transferred regulatory oversight of the electricity market in Kogi State to the Kogi State Electricity Regulatory Commission (KSERC).

The transfer follows the provisions of the Electricity Act 2023 (EA 2023), which stipulates that NERC retains regulatory authority over inter-state and international generation, transmission, supply, and trading, as well as system operations.

However, the Act allows states to establish and regulate intrastate electricity markets upon formal notification to NERC.

According to NERC, the Government of Kogi State has met all the legal requirements outlined in the EA 2023 and formally requested the transfer of regulatory oversight. This move positions KSERC as the primary regulator of intrastate electricity operations within Kogi State.

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Under the new order, NERC has directed the Abuja Electricity Distribution Company (AEDC), which currently serves the state, to establish a subsidiary—AEDC SubCo—within 60 days, effective from September 13, 2024.

This new entity will assume responsibility for the supply and distribution of electricity within Kogi State. AEDC SubCo will also be required to obtain the necessary license for intrastate operations from KSERC.

The entire transfer process is expected to be completed by March 12, 2025. This transition is seen as part of the broader reforms introduced under the EA 2023, aimed at decentralizing the regulation of Nigeria’s electricity market, giving states more control over their electricity supply systems, and potentially improving service delivery and accountability at the state level.