NERC Approves Transfer Of Electricity Regulation To Kogi

The Kogi State Electricity Regulatory Commission has been approved to oversee the state’s electricity market.

The Nigerian Electricity Regulatory Commission (NERC) confirmed this in a statement issued via its official X account on Wednesday, underscoring the legal foundation for this decision.

Naija News understands that this action was taken following the state government’s adherence to the provisions set forth in the amended Constitution of the Federal Republic of Nigeria and the Electricity Act 2023 (Amended).

In accordance 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),” NERC noted in the statement.

The commission reassured it would continue to function as the primary regulator, overseeing inter-state and international activities related to electricity generation, transmission, supply, and trading.

Nevertheless, the Electricity Act of 2023 permits states to create and manage their own intrastate electricity markets, contingent upon their submission of a formal notification to NERC and the fulfillment of all legal obligations.

“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 met the necessary requirements, has officially requested the Nigerian Electricity Regulatory Commission (NERC) to transfer the regulatory oversight of its intrastate electricity market. In reply, NERC has issued an order detailing various directives for the transfer process.

The transfer order includes significant provisions, such as instructing the Abuja Electricity Distribution Company to establish a subsidiary known as AEDC SubCo, which will be responsible for the intrastate supply and distribution of electricity within 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.