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A new chapter has begun in Edo State’s electricity journey, as the Nigerian Electricity Regulatory Commission formally hands over regulatory responsibility to the Edo State Electricity Regulatory Commission (ESERC).
This significant transfer of authority promises to usher in a era of more tailored and effective regulation, better suited to the state’s unique needs.
The commission’s Wednesday communiqué emphasized that the transfer of regulatory authority to ESERC is firmly grounded in the nation’s supreme law, as enshrined in the amended Constitution of the Federal Republic of Nigeria, and further bolstered by the provisions of the Electricity Act 2023, as amended, ensuring a transition that is both lawful and orderly.
Notably, the Electricity Act 2023 (EA 2023) established the commission as the central regulatory authority, tasked with overseeing the critical aspects of inter-state and international electricity generation, transmission, supply, trading, and system operations, while allowing for decentralized regulation at the state level.
Furthermore, the EA 2023 requires states seeking to establish and regulate their own intrastate electricity markets to submit a formal notification outlining their processes and request the transfer of regulatory authority from NERC to the State Regulator, ensuring a seamless handover of power.
NERC recognized that the Edo State Government had satisfactorily met the conditions stipulated in the laws, submitting a formal notification and requesting the transfer of regulatory authority for the intrastate electricity market, thereby fulfilling the necessary criteria for the transition.
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The transfer Order by NERC has the following provisions: – Direct Benin Electricity Distribution Company (BEDC) to incorporate a subsidiary (BEDC SubCo) to assume responsibilities for intrastate supply and distribution of electricity in Edo State from BEDC.
A 60-day window, commencing August 21, 2024, has been allocated to BEDC to finalize the incorporation of BEDC SubCo, a vital step in the company’s strategic transformation and growth initiatives.
In addition to its incorporation, BEDC SubCo is also mandated to secure a license from ESERC for the intrastate supply and distribution of electricity, along with fulfilling other regulatory requirements, to ensure a seamless operation.
February 20, 2025, has been designated as the completion date for all transfers envisioned by the order, marking the culmination of a significant regulatory overhaul aimed at enhancing the state’s electricity sector.
