Ondo Regulates Its Electricity Market Like Enugu, Ekiti

THE state's electrical regulatory bureau (OSERB) has taken over management of the Ondo energy market from the Nigerian electrical Regulatory Commission (NERC).

The commission said in a statement on Tuesday that the decision complies with both the updated Electricity of Act 2023 and the amended Federal Republic of Nigeria (CFRN) Constitution.

As per the statement, the Nigerian Electricity Regulatory Commission (NERC) will continue to function as the primary regulatory body, supervising generation, transmission, supply, trading, and system operations on both domestic and international levels in compliance with the electricity Act.

NERC said, “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) has issued an order to transfer regulatory oversight of the electricity market in Ondo State from the Commission to the Ondo State Electricity Regulatory Bureau (OSERB).

“Recall that with the EA 2023, the Commission retains the role as central regulator with regulatory oversight on the inter- state/international generation, transmission, supply, trading and system operations.

“The EA 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 Ondo 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 Ondo State.”

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The Benin energy Distribution Company (BEDC) was also instructed by the NERC to establish a subsidiary, BEDC SubCo, to assume BEDC's responsibilities for supplying and distributing energy in the state of Ondo.

The commission mandated that the subsidiary's incorporation be finished within 60 days beginning on April 22. Additionally, the sub-company was required to apply for and receive from OSERB a license for the intrastate supply and distribution of energy.

It has been emphasized by NERC that all transfers envisioned by this directive must be finished by October 22.

The commission gave the state governments control over the power markets in Enugu and Ekiti on April 22.