TUE APRIL 23 2024-theGBJournal| The Nigerian Electricity Regulatory Commission (NERC) has issued an order to transfer regulatory oversight of the electricity market in Ekiti State from the Commission to the Ekiti State Electricity Regulatory Bureau (EERB).
The order is in compliance with the amended Constitution of the Federal Republic of Nigeria (CFRN) and the Electricity Act 2023 (Amended)
Recall that with the Electricity Act (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 Ekiti 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 Ekiti State.
The transfer Order by NERC has the following provisions:
-Direct Benin Electricity Distribution Company (BEDC) and Ibadan Electricity Distribution Company PLC (IBEDC) to incorporate a subsidiary (BEDC SubCo and IBEDC SubCo) to assume responsibilities for intrastate supply and distribution of electricity in Ekiti State from BEDC and IBEDC.
-BEDC and IBEDC shall complete the incorporation of BEDC SubCo and IBEDC SubCo within 60 days from 22 April 2024 and the subcompanies shall apply for and obtain licences for the intrastate supply and distribution of electricity from EERB, among other directives.
Meanwhile, the Federal Government has begun the unbundling process of 11 electricity distribution companies along state lines.
Some of the DisCos are too big for efficiency,” the Minister of Power, Adebayo Adelabu told the Senate Committee on Power on Monday.
”They are too big for efficiency. They are too big effectiveness,” he added.
Already, the Abuja Electricity Distribution Company under the management of UBA Plc, while Benin Electricity Distribution Company, Kaduna Electricity Distribution Company and Kano Electricity Distribution Company are under the management of Fidelity Bank.
AMCON is also currently managing the Ibadan Electricity Distribution Company.
All under management due to their inability to repay their loans to the banks.
All transfers envisaged by this order shall be completed by 22 October 2024.
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