NERC transfers regulatory control of Ekiti Electricity to State-Level Commission.
In a significant development for Nigeria’s power sector, the Nigerian Electricity Regulatory Commission (NERC) has announced the official transfer of oversight of Ekiti State’s electricity market to the Ekiti State Electricity Regulatory Bureau (EERB). This move, set to take effect on May 1, 2024, marks a pivotal step towards decentralizing regulatory control within the nation’s energy industry.
The decision, outlined in a NERC order dated April 22, 2024, comes as a result of recent legislative amendments under the Electricity Act 2023, which aim to empower state-level regulatory bodies. Under these amendments, certain regulatory powers previously held by the federal government have been shifted to individual states, granting them greater autonomy over electricity management within their jurisdictions.
According to the order, the Ibadan Electricity Distribution PLC (IBEDC) has been directed to establish a subsidiary, IBEDC SubCo, specifically tasked with managing electricity operations within Ekiti State. This subsidiary will be responsible for local supply and distribution, effectively segregating its operations from the national grid where necessary.
IBEDC has been given a 60-day window from the effective date of the order to establish IBEDC SubCo and delineate the geographic boundaries of Ekiti’s electricity network. This includes installing boundary meters to manage the transition from state to national grid connections.
Furthermore, IBEDC SubCo is required to obtain a license from the newly empowered EERB for its operations within the state. The EERB will now hold exclusive authority to set end-user electricity tariffs in Ekiti State, tailored to local economic conditions and operational costs.
This transfer of regulatory powers is expected to promote efficiency, accountability, and responsiveness in the management of electricity services in Ekiti State. By localizing decision-making, the EERB can better address the specific needs of Ekiti’s electricity consumers and ensure fair pricing conducive to local economic development.
Industry experts view this decentralization effort as a monumental change in Nigeria’s electricity sector, with potential to enhance service delivery and foster economic growth. It is anticipated that other states will follow Ekiti’s lead, leading to a more diversified and locally managed electricity market across the nation.
The full transition, including the transfer of assets and operational responsibilities to IBEDC SubCo, is expected to be completed by October 22, 2024, setting a new precedent for state involvement in the critical area of energy regulation.
