The Nigerian Electricity Regulatory Commission (NERC) has announced the transfer of regulatory oversight of the Enugu electricity market to the Enugu Electricity Regulatory Commission (EERC) with effect from May 1, 2024.
The move which marks the first-ever transfer of regulatory powers from NERC to a state government electricity regulator is contained in a memo issued by NERC and signed by its Chairman, Sanusi Garba, and Commissioner Legal, Licensing, and Compliance, Dafe Akpeneye on Monday.
The decision to cede regulatory authority to the EERC is a fallout of the recent amendment of the constitution, which removed the power sector from the exclusive legislative list, thereby allowing for the decentralization of power generation, transmission, and distribution to federating units.
The memo outlines the framework under which states can establish their regulatory authorities and manage the transition of oversight but adds that states intending to regulate their electricity markets must notify NERC and the relevant distribution licensee.
This decentralization initiative aims to enhance efficiency and responsiveness in the management of electricity services by aligning regulatory oversight more closely with local needs and conditions.
Under the new regulatory order, the Enugu Electricity Distribution Company (EEDC) is mandated to establish a subsidiary, known as EEDC SubCo, under the Companies and Allied Matters Act which will be responsible for the localized supply and distribution of electricity exclusively within Enugu State.
EEDC must finalize the incorporation of EEDC SubCo within 60 days from the effective date, after which the subsidiary is required to secure a license from the Enugu Electricity Regulatory Commission (EERC) for its operations.
The EEDC according to the regulation is tasked with clearly defining the geographical boundaries of its network within Enugu State to ensure that it operates independently of networks in neighboring states by installing boundary meters at all crossing points.