Kogi State Takes Control of Electricity Market Regulation from NERC
In line with the amended Constitution of the Federal Republic of Nigeria (CFRN) and the Electricity Act 2023, the Nigerian Electricity Regulatory Commission (NERC) has formally transferred regulatory oversight of the electricity market in Kogi State to the Kogi State Electricity Regulatory Commission (KSERC).
This move follows the recent legal framework which allows states to regulate intrastate electricity markets. Under the Electricity Act 2023, NERC retains authority over inter-state and international electricity generation, transmission, and supply but requires any state seeking to establish its regulatory body for intrastate electricity to notify the Commission and request a formal transfer of oversight. The Government of Kogi State fulfilled these legal conditions, leading to the issuance of the transfer order by NERC.
Key directives of the order include:
- The Abuja Electricity Distribution Company (AEDC) must create a subsidiary (AEDC SubCo) to manage the intrastate supply and distribution of electricity in Kogi State.
- AEDC is mandated to complete the incorporation of this subsidiary within 60 days from September 13, 2024.
- The AEDC SubCo will be required to obtain the necessary licensing from KSERC.
All transfers outlined in the order must be finalized by March 12, 2025. More details are available on the NERC website.
