…joins Lagos, Kogi, others
Niger State government has secured control over the state electricity market, as Nigerian Electricity Regulatory Commission (NERC) transfers regulatory oversight function to the Niger State Electricity Regulatory Commission (NSERC).
This is in compliance with the Electricity Act (EA) 2023, which empowers state governments, individuals to actively participate in electricity generation, transmission and distribution.
The EA also mandates any state that intends to establish and regulate intrastate electricity markets to deliver a formal notification of its processes and requests NERC to transfer regulatory authority over electricity operations in the state to the State Regulator.
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So far, several states including Edo, Enugu, Ekiti, Imo, Ondo, Oyo, Ogun and Lagos states have been granted regulatory autonomy over their electricity market.
According to a public notice issued by NERC on Friday, the Government of Niger State complying with the conditions precedent in the laws, duly notified NERC and requested for the transfer of regulatory oversight of the intrastate electricity market in Niger State.
The commission thereby directed Abuja Electricity Distribution Plc (AEDC) to incorporate a subsidiary (AEDC SubCo) to assume responsibilities for intrastate supply and distribution of electricity in Niger State from AEDC.
“AEDC shall complete the incorporation of AEDC SubCo within 60 days from 10th January 2024. The subcompany shall apply for and obtain licence for the intrastate supply and distribution of electricity from NSERC, among other directives.
“Ibadan Electricity Distribution Company Plc (IBEDC) will incorporate a subsidiary (IBEDC SubCo) to assume responsibilities for intrastate supply and distribution of electricity in Niger State from IBEDC.
“IBEDC shall complete the incorporation of IBEDC SubCo within 60 days from 10th January 2024. The subcompany shall apply for and obtain licence for the intrastate supply and distribution of electricity from NSERC, among other directives. All transfers envisaged by this order shall be completed by July 9, 2025,” the order read.