NERC noted that all transfers envisaged by this order should be completed by 22 October 2024
The Nigerian Electricity Regulatory Commission (NERC) has issued an order to transfer regulatory oversight of the electricity market in Enugu State to the Enugu State Electricity Regulatory Commission (EERC).
The commission, in a public notice posted on its X handle on Monday, said this complies with the amended Constitution of the Federal Republic of Nigeria (CFRN) and the Electricity Act 2023 (Amended).
In March last year, former President Muhammadu Buhari signed 16 constitutional amendment bills, one of which pertains to the devolution of powers concerning the national grid system. It also provided clarity on the powers of the federal government and states to generate, transmit, and distribute electricity.
Last June, President Bola Tinubu assented to the electricity bill, which authorises states, companies, and individuals to generate, transmit and distribute electricity.
The new electricity law repeals the Electric Power Sector Reform Act (EPSRA), signed by President Olusegun Obasanjo in 2005.
The EPSRA (2005) provided the legal, regulatory and governance frameworks underpinning the Nigerian Electricity Supply Industry (NESI).
The new Act signed by Mr Tinubu consolidates all legislations dealing with the electricity supply industry to provide an omnibus and ideal institutional framework to guide the post-privatization phase of the Nigerian Electricity Supply Industry and encourage private sector investments in the industry.
It also provides a framework for improving access to electricity in rural, unserved, underserved, peri-urban and urban areas through the use of conventional sources and renewable energy off-grid and mini-grid solutions.
With the new law, states would be able to issue licenses to private investors who can operate mini-grids and power plants, but such state licenses are not to extend to inter-state or transnational distribution of electricity.
NERC new directives
The commission, in its notice on Monday, explained that with the Electricity Act, it retains the role as a central regulator with regulatory oversight on the inter-state/international generation, transmission, supply, trading and system operations.
"In compliance with the amended Constitution of the Federal Republic of Nigeria (CFRN) and the Electricity Act 2023 (Amended), the Nigerian Electricity Regulatory Commission (NERC or the Commission) has issued an order to transfer regulatory oversight of the electricity market in Enugu State from the commission to the Enugu State Electricity Regulatory Commission.
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"With the EA, the commission retains the role as a central regulator with regulatory oversight on the inter-state/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 NERC to transfer regulatory authority over electricity operations in the state to the state regulator," the notice said.
Based on this, the commission said the government of Enugu 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 Enugu State.
NERC directed the Enugu Electricity Distribution Company PLC (EEDC) to incorporate a subsidiary (EEDC SubCo) to assume responsibilities for intrastate supply and distribution of electricity in Enugu State from EEDC.
"EEDC shall complete the incorporation of EEDC SubCo within 60 days from 22 April 2024, and the sub-company shall apply for and obtain a license for the intrastate supply and distribution of electricity from EERC, among other directives.
"All transfers envisaged by this order shall be completed by 22 October 2024," the commission said.
