NERC transfers regulatory oversight of electricity market to Oyo

The Nigerian Electricity Regulatory Commission (NERC) says it has transferred regulatory oversight of the electricity market in Oyo to the State Electricity Regulatory Commission (OSERC).

This is contained in an order posted on the Commission’s website, a copy of which was obtained by the newsmen in Abuja on Tuesday.

According to NERC, the transfer is in compliance with the amended Constitution of the Federal Republic of Nigeria (CFRN) and the Electricity Act 2023 (Amended).

”The commission recalls that with the Electricity Act (EA) 2023, it retains the role of a central regulator with regulatory oversight on interstate and international generation, transmission, supply, trading, and system operations.

”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 to NERC to transfer regulatory authority over electricity operations in the state to the state regulator.

”Based on this, the government of Oyo State complied with the conditions precedent in the laws, duly notified NERC, and requested the transfer of regulatory oversight of the intrastate electricity market,” it said.

The commission said that the transfer order had the following provisions:

”Direct Ibadan Electricity Distribution Company (IBEDC) to incorporate a subsidiary (IBEDC SubCo) to assume responsibilities for intrastate supply and distribution of electricity in Oyo from IBEDC.

”IBEDC shall complete the incorporation of IBEDC SubCo within 60 days from August 6.

”The sub company shall apply for and obtain a licence for the intrastate supply and distribution of electricity from OSERC, among other directives.

”All transfers envisaged by this order shall be completed by Feb 5, 2025,” it said