NERC Assigns State's Regulatory Commission Control Over Enugu Energy Market

THE duty of overseeing the electricity market in Enugu State has been assigned to the Enugu State Electricity Regulatory Commission (EERC) by the Nigerian Electricity Regulatory Commission (NERC).

The commission said that this decision is in line with the Federal Republic of Nigeria's revised Constitution and the Electricity Act 2023 (revised) in a statement released on Monday, April 22.

The statement states that NERC will continue to serve as the primary regulatory body, supervising interstate and international generation, transmission, supply, trading, and system operations in accordance with the Electricity Act.

“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 Enugu State from the Commission to the Enugu State Electricity Regulatory Commission,” NERC said.

“With the Electricity Act, the Commission retains the role as central regulator with regulatory oversight on the inter- state/international generation, transmission, supply, trading, and system operations.

“The Electricity Act 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 Enugu 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 Enugu State.”

The Enugu Energy Distribution Company, Plc, was given instructions by NERC to establish EEDC SubCo, a subsidiary that would assume EEDC's responsibilities for distributing and delivering energy throughout Enugu State.

The commission gave EEDC a deadline of 60 days starting on April 22 to complete the subsidiary's creation. Furthermore, EERC must grant the subsidiary a license for the provision and distribution of intrastate power.

NERC stipulated that this directive's transfers must be completed by October 22.