NERC Approves Transfer Electricity Regulation to Kogi

The Nigerian Electricity Regulatory Commission has officially approved the transfer of regulatory oversight of the electricity market in Kogi to the Kogi State Electricity Regulatory Commission.

This development followed the compliance of the state government with the stipulations outlined in the amended Constitution of the Federal Republic of Nigeria and the Electricity Act 2023 (Amended).

In a statement on NERC’s official handle on X (formerly Twitter) on Wednesday, the commission highlighted the legal basis for this decision.

“In compliance with the amended Constitution of the Federal Republic of Nigeria (CFRN) and the Electricity Act 2023 (Amended), the Nigerian Electricity Regulatory Commission has issued an order to transfer regulatory oversight of the electricity market in Kogi State from the Commission to the Kogi State Electricity Regulatory Commission (KSERC),” it stated.

NERC retains its role as the central regulator, overseeing inter-state and international electricity generation, transmission, supply, and trading activities.

However, the Electricity Act of 2023 allows states to establish and regulate intrastate electricity markets, provided they submit a formal notification to NERC and fulfil all legal requirements.

“The EA also mandates any state that intends to establish and regulate intrastate electricity markets to deliver a formal notification of its processes and request NERC to transfer regulatory authority over electricity operations in the state to the State Regulator,” the statement added.

Kogi having complied with these requirements, formally requested NERC to transfer the regulatory oversight of its intrastate electricity market. In response, NERC has issued an order that outlines several directives for the transfer process.

Key provisions in the transfer order include directing the Abuja Electricity Distribution Company to incorporate a subsidiary, referred to as AEDC SubCo, which will handle the intrastate supply and distribution of electricity in Kogi State.

“The AEDC shall complete the incorporation of AEDC SubCo within 60 days from 13th September 2024. The sub-company shall apply for and obtain a licence for the intrastate supply and distribution of electricity from KSERC,” NERC emphasised.

NERC has set a deadline for the completion of all transfers under this order by 12th March 2025