The Nigerian Electricity Regulatory Commission (NERC) has officially transferred the oversight of Ekiti State’s electricity market to the Ekiti State Electricity Regulatory Bureau (EERB).
Set to take effect on May 1, 2024, the move symbolizes a broader decentralization effort within Nigeria’s power sector, influenced by recent legislative amendments under the Electricity Act 2023.
This transfer was outlined in a NERC order dated April 22, 2024, marking a significant step towards empowering state-level regulatory capabilities.
The move stems from constitutional amendments signed into law on March 17, 2023, which shifted certain powers from the federal to state governments, allowing them to independently manage electricity generation, transmission, and distribution within their jurisdictions.
The official announcement was made through an order dated April 22, 2024, where NERC outlined the transfer process, aligning with the broader legislative changes under the amended Electricity Act 2023.
These changes, initiated by the amendment of the Constitution on March 17, 2023, have shifted significant regulatory responsibilities from the federal level to individual states, allowing them more autonomy over their electricity markets.
According to the order, the Ibadan Electricity Distribution PLC (IBEDC) is directed to create a subsidiary specifically for the intrastate management of electricity in Ekiti State, referred to as IBEDC SubCo.
This subsidiary is tasked with assuming responsibilities for the local supply and distribution of electricity, effectively segregating its operations from the national grid where necessary.
IBEDC has a 60-day window from the effective date of the order to establish IBEDC SubCo and to delineate the geographic boundaries of Ekiti’s electricity network.
This involves installing boundary meters at all points where the network transitions from Ekiti State to neighboring regions, ensuring a clear operational demarcation.
Furthermore, IBEDC SubCo is required to apply for and obtain a license from the newly empowered EERB for its operations within the state.
The EERB now holds the exclusive authority to set end-user electricity tariffs in Ekiti State.
These tariffs will be determined based on local economic conditions and operational costs, and are intended to be more closely aligned with the needs and capabilities of the state’s residents and businesses.
Akin Oyebode, Ekiti State
Commissioner for Finance, described the development as a journey towards decentralising electricity markets in Ekiti State.
“These two @NERCNG orders signal the transfer of intra-state regulation from them to Ekiti State Electricity Bureau.
“As a State , we have invested heavily in expanding the distribution network within Ekiti, which is connecting communities to the grid; we’ve also attracted our first IPP, which is fully operational.
“This regulatory oversight only deepens our participation in the sector,” Oyebode explained. (vitalnewsngr.com)
