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In line with the Electricity Act (EA) 2023 (amended), the Nigerian Electricity Regulatory Commission (NERC) has transferred regulatory oversight of the electricity market in Ogun to the Ogun State Electricity Regulatory Commission (OGERC).
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The transfer follows the state’s compliance with legal requirements to establish and regulate its intra-state electricity market.
However, 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.
The law designates NERC as the central regulator for inter-state and international electricity operations but empowers states to regulate intra-state markets upon formal notification and approval.
NERC’s directive mandates the Eko Electricity Distribution Company (EKEDP), Ikeja Electric PLC (IE), and Ibadan Electricity Distribution Company (IBEDC) to establish subsidiaries -EKEDP SubCo, IE SubCo, and IBEDC SubCo, respectively -to manage electricity supply and distribution within Ogun State. The subsidiaries must be incorporated within 60 days from December 24, 2024, and obtain licences from OGERC.
All transfers outlined in the order are to be completed by June 23, 2025.
“The Government of Ogun 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 Ogun State.
“Direct Eko Electricity Distribution Company (EKEDP), Ikeja Electric PLC (IE) and Ibadan Electricity Distribution Company (IBEDC) to incorporate subsidiaries: EKEDP SubCo, IE SubCo and IBEDC SubCo respectively to assume responsibilities for intrastate supply and distribution of electricity in Ogun State from EKEDP, IE and IBEDC,” the directive stated.
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