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Imo State has been granted greater autonomy in managing its electricity sector, as the Nigerian Electricity Regulatory Commission (NERC) transfers regulatory oversight to the Imo State Electricity Regulatory Commission (ISERC), enabling more targeted and effective governance.
According to a regulatory document dated June 27, 2024, and obtained by the press in Abuja, the Nigerian Electricity Regulatory Commission (NERC) has issued a landmark order, paving the way for a significant development in the electricity sector.
According to NERC, the “Order shall take effect from 1 July 2024.”
The regulatory body’s move is in lockstep with the updated Electricity Act of 2023, which mandates such a directive to ensure a seamless and efficient electricity market.
The commission’s chairman, Engr. Sanusi Garba, emphasized that the deadline for completing all transfers is December 31, 2024, paving the way for a well-coordinated and efficient transition.
The order was formally executed by Chairman Engr. Sanusi Garba and Barrister Dafe Akpeneye, Commissioner for Legal, Licensing, and Compliance, signifying their joint authorization and endorsement.
Read also: Uzodinma Inaugurates Imo Electricity Regulatory Commission
The electricity market in the Federal Republic of Nigeria was previously centralised and the move to decentralisation was achieved when presidential assent was granted to the amendment of relevant portions of the Constitution of the Federal Republic of Nigeria (“CFRN”) on 17 March 2023.
“This Order shall take effect from 1 July 2024,” said NERC.
The electricity market in the Federal Republic of Nigeria was previously centralised and the move to decentralisation was achieved when presidential assent was granted to the amendment of relevant portions of the Constitution of the Federal Republic of Nigeria (“CFRN”) on 17 March 2023.
Paragraph 14(b) Part II of the Second Schedule to the 1999 CFRN which provides that “a House of Assembly may make laws for the State with respect to generation, transmission, and distribution of electricity to areas not covered by a national grid system within that State” was amended to “a House of Assembly may make laws for the State with respect to generation, transmission, and distribution of electricity to areas within that State”.
This amendment granted legislative autonomy to federating states in the Federal Republic of Nigeria by empowering the sub-national governments to legislate on the generation, transmission and distribution of electricity within each respective state.
Meanwhile, the commission noted that the order seeks to – Commence the process of the transfer of regulatory oversight for the intrastate electricity market in Imo State from the Commission to ISERC in accordance with the CFRN and the EA.
NERC the order provides a transition plan for the transfer of regulatory oversight for the intrastate electricity market in Imo State from the Commission to ISERC in accordance with the CFRN and the EA.
It seems to address ensuing transitional matters arising from the transfer of regulatory oversight for the intrastate electricity market in Imo State from the Commission to ISERC.
NERC hereby orders as follows: “Enugu Electricity Distribution Company (“EEDC”) is hereby directed to incorporate a subsidiary (“EEDC SubCo”) under the Companies and Allied Matters Act for the assumption of responsibilities for intrastate supply and distribution of electricity in Imo State from EEDC.
“EEDC shall complete the incorporation of EEDC SubCo within 60 days from the effective date of this Order and, EEDC SubCo shall apply for and obtain a licence for the intrastate supply and distribution of electricity from ISERC.
