The Nigerian Electricity Regulatory Commission (NERC) has granted Oyo State the authority to establish and regulate its own electricity market, in compliance with the amended Constitution and Electricity Act 2023.
The transfer of regulatory oversight from NERC to the newly create Oyo State Electricity Regulatory Commission (OSERC) will allow the state to manage its intrastate electricity generation, transmission, supply, and distribution,a statement said on Tuesday.
The agency has directed Ibadan Electricity Distribution Company (IBEDC) to incorporate a subsidiary, IBEDC SubCo, within 60 days to assume responsibilities for electricity supply and distribution within Oyo State.
According to the agency,the subcompany must apply for and obtain a license from OSERC for intrastate operations.
The transfer of regulatory authority is expected to be completed by February 5, 2025.
This move aligns with the amended Electricity Act 2023, which mandates states to establish their own regulatory bodies for intrastate electricity markets and notify NERC for the transfer of authority.
NERC ‘s statement reads in parts: “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 Oyo State from the Commission to the Oyo State Electricity Regulatory Commission (OSERC).
“Recall that with the EA 2023, the Commission retains the role as a central regulator with regulatory oversight on the inter-state and 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 Oyo 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 Oyo State”.
NERC listed the provisions of the transfer Order to include:direct Ibadan Electricity Distribution Company (IBEDC) to incorporate a subsidiary (IBEDC SubCo) to assume responsibilities for intrastate supply and distribution of electricity in Oyo State from IBEDC; IBEDC shall complete the incorporation of IBEDC SubCo within 60 days from 6th August 2024; and that the subcompany shall apply for and obtain licence for the intrastate supply and distribution of electricity from OSERC, among other directives.
(vitalnewsngr.com)
