From Isaac Anumihe, Abuja
The Nigerian Electricity Regulatory Commission (NERC) has transferred its regulatory authority to the Imo State Electricity Regulatory Commission (ISERC) in compliance with the Electricity Act (EA) 2023.
The main highlights of the EA are the creation of State Electricity Markets, the incorporation and licensing of Independent System Operators (ISOs), and the development and utilisation of renewable energy.
In compliance with the amended EA 2023, NERC issued an order to transfer regulatory oversight of the electricity market in Imo State from the Commission to ISERC.
According to NERC, it still retains the role of central regulator, with regulatory oversight of interstate/international generation, transmission, supply, trading, and system operations.
The EA mandates any state that intends to establish and regulate intrastate electricity markets to deliver formal notification of its processes and request that NERC transfer regulatory authority over electricity operations in the state to the state regulator.
Based on this, the Government of Imo State complied with the conditions precedent in the laws, duly notified NERC, and requested the transfer of regulatory oversight of the intrastate electricity market in Imo State.
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The transfer order by NERC has the following provisions:
* It directs the Enugu Electricity Distribution Company (EEDC) to incorporate a subsidiary (EEDC SubCo) to assume responsibilities for the intrastate supply and distribution of electricity in Imo State from EEDC.
* EEDC shall complete the incorporation of EEDC SubCo within 60 days from 27 June 2024. The sub-company shall apply for and obtain a licence for the intrastate supply and distribution of electricity from ISERC, among other directives.
“All transfers envisaged by this order shall be completed by 31 December 2024.
“Kindly access the details of the Order on the NERC website via this link: https://nerc.gov.ng/media/order-on-transfer-of-regulatory-oversight-to-imo-state-electricity-regulatory-commission/,” NERC said.