The Nigerian Electricity Regulatory Commission (NERC) has issued an order transferring regulatory oversight of the electricity market in Niger State to the State Electricity Regulatory Commission (NSERC).
In a statement posted on its X handle on Friday, NERC explained that the transfer complies with the Constitution and the Electricity Act (EA) 2023 as amended.
According to the commission, under the provisions of the EA 2023, it retains its role as a central regulator, overseeing inter-state and international generation, transmission, supply, trading, and system operations. However, the act mandates that any state intending to establish and regulate intrastate electricity markets must formally notify NERC of its processes and request the transfer of regulatory authority to its state regulator.
“Based on this, the Government of Niger State complied with the conditions precedent in the laws, duly notified NERC, and requested the transfer of regulatory oversight for the intrastate electricity market in the state,” the statement read.
Following the request, NERC directed the Abuja Electricity Distribution Company (AEDC) to incorporate a subsidiary (AEDC SubCo) to assume responsibilities for intrastate supply and distribution of electricity in Niger State.
“AEDC should complete the incorporation of AEDC SubCo within 60 days from January 10, and the sub-company shall apply for and obtain a license for the intrastate supply and distribution of electricity from NSERC, among other directives,” NERC stated.
Similarly, NERC directed the Ibadan Electricity Distribution Company Plc (IBEDC) to establish a subsidiary (IBEDC SubCo) to handle intrastate supply and distribution of electricity in Niger State.
“IBEDC shall complete the incorporation of IBEDC SubCo within 60 days from January 10. The sub-company shall apply for and obtain a license for the intrastate supply and distribution of electricity from NSERC, among other directives,” the statement added.
The commission further directed that all transfers outlined in the order must be completed by July 9, 2025.
