….Direct Benin Electricity Distribution Company (BEDC) to incorporate a subsidiary (BEDC SubCo)
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 Ondo State from the Commission to the Ondo State Electricity Regulatory Bureau (OSERB).
Recall that with the EA 2023, the Commission retains the role as 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 Ondo 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 Ondo State.
The transfer Order by NERC has the following provisions:
– Direct Benin Electricity Distribution Company (BEDC) to incorporate a subsidiary (BEDC SubCo) to assume responsibilities for intrastate supply and distribution of electricity in Ondo State from BEDC.
– BEDC shall complete the incorporation of BEDC SubCo within 60 days from 22 April 2024 and the sub-company shall apply for and obtain licence for the intrastate supply and distribution of electricity from OSERB, among other directives.
All transfers envisaged by this order shall be completed by 22 October 2024.
“And in compliance with the Electricity Act 2023 (amended), we have issued orders to three states to transfer regulatory oversight to them. These states can now take over completely to regulate tariffs and power supply within their jurisdictions, and where those states need to buy power from the national grid, NERC will take responsibility for regulating such transactions.”
The states are Enugu, Ekiti and Ondo.
Damilola Bello
