▪️Jameson Alaribe
The Nigerian Electricity Regulatory Commission (NERC) has announced the transfer of oversight of the electricity market in Imo State to the Imo State Electricity Regulatory Commission (ISERC). This move is in accordance with the amended Constitution of the Federal Republic of Nigeria (CFRN) and the provisions of the newly amended Electricity Act 2023 (EA 2023).
NERC has historically held the central role in regulating Nigeria’s electricity market, covering inter-state and international generation, transmission, supply, trading, and system operations. However, the amended EA 2023 stipulates that states intending to regulate their intrastate electricity markets must formally notify NERC and request the transfer of regulatory authority to their state regulatory bodies.
Following this directive, the Government of Imo State fulfilled the required legal conditions and formally requested NERC to transfer regulatory oversight of its intrastate electricity market. “The Imo State Government has systematically adhered to the stipulations in the amended EA 2023 for this transfer,” noted a spokesperson from NERC.
The official order from NERC outlines several key actions and timelines for this transition. A significant provision directs the Enugu Electricity Distribution Company (EEDC) to establish a subsidiary, known as EEDC SubCo, specifically to manage the intrastate supply and distribution of electricity within Imo State.
“EEDC has been instructed to complete the incorporation of EEDC SubCo within a strict 60-day timeframe, commencing from June 27, 2024,” said a senior official from NERC. Furthermore, this new subsidiary must secure the necessary licenses from ISERC to operate legally within the state.
Additionally, all activities related to the transfer of oversight and the establishment of EEDC SubCo must be completed by December 31, 2024. This timeline ensures a smooth and structured transition, allowing ISERC to fully assume its regulatory role without disrupting the electricity supply in Imo State.
Industry experts believe that this devolution of regulatory power will enable more localized and efficient management of electricity resources in Imo State. “With ISERC now at the helm, we anticipate a more responsive and tailored approach to addressing the electricity needs and challenges within the state,” commented Engr. Gordian Eze, an energy policy analyst.
The transfer of regulatory authority marks a pivotal moment in Nigeria’s energy sector, showcasing the evolving landscape of electricity governance and the increasing push towards state-level management and accountability. Gmtnewsng
