The Nigerian Electricity Regulatory Commission (NERC) has officially transferred regulatory oversight of the electricity market within Edo State to the newly established Edo State Electricity Regulatory Commission (ESERC).
This move aligns with the amended Constitution of the Federal Republic of Nigeria (CFRN) and the Electricity Act 2023.
In a statement released on Wednesday, August 21, 2024 NERC confirmed that the transfer followed Edo State’s compliance with the necessary legal requirements. According to the Electricity Act 2023, states intending to establish and regulate their own intrastate electricity markets must formally notify NERC and request the transfer of regulatory authority to their state regulators.
The transfer order issued by NERC includes several key directives, such as instructing the Benin Electricity Distribution Company (BEDC) to create a subsidiary, BEDC SubCo, to manage the supply and distribution of electricity within Edo State. BEDC has been given a 60-day window, starting from August 21, 2024, to complete the incorporation of this subsidiary. Additionally, BEDC SubCo is required to obtain a license from ESERC to operate within the state.
NERC’s transfer order stipulates that all related processes must be concluded by February 20, 2025.
