The Nigerian Electricity Regulatory Commission (NERC) has transferred regulatory oversight of the electricity market in Edo State to the Edo State Electricity Regulatory Commission.

This decision was made in compliance with the amended Constitution of the Federal Republic of Nigeria and the Electricity Act 2023.

NERC disclosed this on its X handle on Wednesday.

According to the statement, the Commission retains the role as a central regulator with regulatory oversight on the inter-state/international generation, transmission, supply, trading and system operations.

The Electricity Act 2023 mandates states that intend to establish and regulate intrastate electricity markets to notify NERC and request the transfer of regulatory authority.

It was noted that the Edo State Government had complied with the necessary conditions and requested the transfer of regulatory oversight, leading to NERC’s order.

The order directs the Benin Electricity Distribution Company to incorporate a subsidiary, BEDC SubCo, to assume responsibilities for intrastate supply and distribution of electricity in Edo State.

BEDC has 60 days to complete the incorporation of BEDC SubCo, which will then apply for and obtain a license from ESERC. The transfer is expected to be completed by February 20, 2025.

This move is seen as a significant step towards decentralising electricity regulation in Nigeria and allowing states to take control of their electricity markets.

NERC stated, “The transfer of regulatory oversight is in line with the Electricity Act 2023 and aims to promote more effective regulation and development of the electricity market in Edo State.”