NERC transfers Ogun electricity oversight to OGERC
NERC
NERC transfers Ogun electricity oversight to OGERC.
The Nigerian Electricity Regulatory Commission has directed the transfer of the regulatory oversight of the electricity market in Ogun State to the Ogun State Electricity Regulatory Commission.
The directive, according to NERC, via its X handle on Monday, owes to the state government’s compliance with the provisions of the Electricity Act 2023 (Amended).
The Act requires that for the establishment of any intra-state electricity markets, the state must notify the commission of the processes involved, after which the NERC can give its authorisation.
“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.
NERC transfers Ogun electricity oversight to OGERC
“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 statement partly read.
The transfer order by NERC states, “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 December 24, 2024.
“The subcompanies shall apply for and obtain licences for the intrastate supply and distribution of electricity from OGERC, among other directives.”
The commission noted that all transfers envisaged by this order shall be completed by June 23, 2025.
