NERC Hands Over Lagos Electricity Regulation to State Authority
In a landmark move, the Nigerian Electricity Regulatory Commission (NERC) has transferred regulatory oversight of Lagos State’s electricity market to the newly established Lagos State Electricity Regulatory Commission (LASERC). This was announced in a statement shared by NERC on Thursday via X (formerly Twitter).
The transfer aligns with the provisions of the amended Constitution of the Federal Republic of Nigeria and the Electricity Act 2023, which empowers states to manage their intrastate electricity markets.
Decentralising Power Regulation
The handover process follows a comprehensive review and compliance with the guidelines outlined in the Electricity Act 2023. The Act stipulates that states intending to regulate their local electricity markets must formally notify NERC and meet specific legal and procedural requirements.
While NERC retains its role as the central regulator for inter-state and international electricity operations, including generation, transmission, supply, and trading, LASERC will now oversee all intrastate electricity operations within Lagos State.
This transition comes shortly after Governor Babajide Sanwo-Olu signed the Lagos State Electricity Bill 2024 into law, laying the foundation for LASERC to take charge of the state’s power sector.
Smooth Transition Plan
To ensure a seamless transition, NERC’s order mandates the following:
- Eko Electricity Distribution Company (EKEDC): The company is directed to incorporate a subsidiary, EKEDP SubCo, within 60 days from December 5, 2024. This subsidiary will handle intrastate electricity supply and distribution and must secure a licence from LASERC.
- Ikeja Electric Plc (IE): Similarly, IE must establish a subsidiary, IE SubCo, within the same timeframe to manage its intrastate operations under LASERC’s regulatory framework.
All transfers and operational changes must be completed by June 4, 2025, according to NERC’s directive.
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Implications for Lagos
This move signals a significant decentralisation of regulatory authority in Nigeria’s power sector. It positions Lagos as a trailblazer in energy autonomy, with the capacity to tailor solutions to its unique electricity needs.
Experts believe this development will boost efficiency, improve service delivery, and accelerate investments in the Lagos electricity market. It is also expected to enhance collaboration between LASERC, local electricity operators, and stakeholders.
As the largest economy and most populous state in Nigeria, Lagos is poised to leverage this regulatory autonomy to address its energy challenges and drive sustainable development.
Stay tuned for updates as LASERC begins its journey to reshape Lagos’ electricity landscape.
