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NERC Hands Regulatory Oversight to Enugu Electricity Commission

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In a bid to increase its domestic power supply, the Nigerian government has enacted measures aimed at curbing cross-border electricity sales to neighboring nations, particularly the Niger Republic and Togo.
An Electricity Grid

The Nigerian Electricity Regulatory Commission (NERC) has transferred regulatory oversight of the electricity market in Enugu State to the Enugu State Electricity Regulatory Commission (EERC).

According to a statement on NERC’s website on Monday, this move is in compliance with the amended Constitution of Nigeria and the Electricity Act 2023.

“NERC in the Order, made the following provisions: – Direct Enugu Electricity Distribution Company PLC to incorporate a subsidiary (EEDC SubCo) to assume responsibilities for intrastate supply and distribution of electricity in Enugu State from EEDC”, the statement read in parts.

The transfer aligns with the Electricity Act, which designates NERC as the central regulator with oversight on inter-state/international generation, transmission, supply, trading, and system operations.

Any state intending to regulate intrastate electricity markets must formally notify NERC and request the transfer of regulatory authority to the State Regulator.

Enugu State Government fulfilled the legal requirements by notifying NERC and requesting the transfer of regulatory oversight. Consequently, NERC issued an order directing the Enugu Electricity Distribution Company PLC (EEDC) to incorporate a subsidiary (EEDC SubCo) responsible for intrastate supply and distribution of electricity.

EEDC is mandated to complete the incorporation of EEDC SubCo within 60 days and apply for a license for intrastate supply and distribution from EERC. All transfers outlined in the order are expected to be completed by October 22, 2024.

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