Ogun State, on Monday, officially joined Imo, Enugu, Ekiti, Ondo, Oyo, Edo and Kogi States as the latest to regulate its electricity market.
The development followed an order issued by the Nigerian Electricity Regulatory Commission (NERC), which granted the newly established Ogun State Electricity Regulatory Commission (OGERC) oversight of the electricity sector within the state.
NewsNGR recalls that states like Imo, Enugu, Ekiti, Ondo, Oyo, Edo and Kogi States had previously secured the NERC’s approvals to regulate electricity markets in their various states.
This was in accordance with the recently amended Constitution of the Federal Republic of Nigeria and the Electricity Act 2023.
According to the commission, the regulations stipulate that while NERC remains the central regulator for inter-state and international electricity operations, states are empowered to oversee their intra-state electricity markets upon formal request and compliance with regulatory processes.
NERC stated that the Ogun State Government had formally notified it of its intention to take on the regulatory role.
The Order, which was tagged: “Transfer of Regulatory Oversight of the Electricity Market in Ogun State to OGERC’’, reads: “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 Ogun State from the Commission to the Ogun State Electricity Regulatory Commission (OGERC).
“Recall that with the EA 2023, 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.
“Based on this, the Government of Ogun State complied with the conditions precedent in the laws, duly notified NERC and requested for the transfer of regulatory oversight of the intrastate electricity market in Ogun State.
“The transfer Order by NERC has the following provisions: – Direct Eko Electricity Distribution Company (EKEDP), Ikeja Electric PLC (IE) and Ibadan Electricity Distribution Company (IBEDC) to incorporate subsidiaries: EKEDP SubCo, IE SubCo and IBEDC SubCo respectively to assume responsibilities for intrastate supply and distribution of electricity in Ogun State from EKEDP, IE and IBEDC.
“EKEDP, IE and IBEDC shall complete the incorporation of EKEDP SubCo, IE SubCo and IBEDC SubCo within 60 days from 24th December 2024.
“The subcompanies shall apply for and obtain licences for the intrastate supply and distribution of electricity from OGERC, among other directives. All transfers envisaged by this order shall be completed by 23rd June 2025’’.