NERC transfers regulatory oversight to ESERC

The Nigerian Electricity Regulatory Commission (NERC) has officially transferred regulatory oversight of the electricity market in Edo State to the newly established Edo State Electricity Regulatory Commission (ESERC).

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

Under the new regulations, NERC would continue functioning as the central regulator with authority over interstate and international electricity generation, transmission, supply, trading, and system operations.

However, the Electricity Act 2023 mandates that states intending to establish and regulate their intrastate electricity markets must formally notify NERC, and request the transfer of regulatory oversight to the state’s electricity regulator.

NERC, yesterday, said that Edo State has met all legal requirements and formally requested this transfer.

As a result, NERC issued an order directing the Benin Electricity Distribution Company (BEDC) to establish a subsidiary, BEDC SubCo, to manage the intrastate supply and distribution of electricity within the state.

BEDC has 60 days from August 21, 2024, to complete the incorporation of this subsidiary, which will seek the necessary licensing from ESERC. All processes related to the transfer are expected to be finalised by February 20, 2025.