In a monumental development for Nigeria’s power sector, the Nigerian Electricity Regulatory Commission (NERC) has officially transferred regulatory oversight of the Enugu State electricity market to the Enugu State Electricity Regulatory Commission (ESERC). This transfer, effective from May 1, 2024, comes following the signing of the Enugu State Electricity Law by Governor Peter Mbah and the establishment of ESERC.
Background and Legislative Changes
The move follows significant legislative changes made by the 9th National Assembly in 2023. Amendments to Paragraph 14 (b) of the Second Schedule to the 1999 Constitution and the enactment of the Electricity Act 2023 devolved power generation, transmission, and distribution from the Exclusive List to the Concurrent List. These changes empower states to manage and regulate their electricity markets independently.
Governor Peter Mbah’s administration paved the way for this shift with the introduction of the Enugu State Electricity Bill 2023, signed into law in September of the same year. In March 2024, Governor Mbah constituted ESERC, appointing Chijioke Okonkwo as Chairman and CEO.
According to the Electricity Act 2023, NERC was required to develop a transition plan within 45 days of receiving formal notification of the new law. This plan outlines the transfer of regulatory responsibilities from NERC to ESERC, to be completed within six months from the date of notification.
NERC has now confirmed that ESERC will hold exclusive authority to set and adopt end-user electricity tariffs within Enugu State, tailoring charges to local conditions and needs.
Implementation and Company Changes.
In line with this transfer, NERC has directed the Enugu Electricity Distribution Company PLC (EEDC) to establish a subsidiary, EEDC SubCo, under the Companies and Allied Matters Act. This subsidiary will assume responsibilities for intrastate supply and distribution of electricity in Enugu State.
EEDC is also mandated to define the geographic boundaries of its network in Enugu State and install boundary meters at all points where the network crosses into neighboring states. This ensures that Enugu State’s electricity market is managed effectively and independently by ESERC, marking a significant milestone in the decentralization of Nigeria’s power sector.
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This Post: Enugu State Takes Control of Electricity Market as Regulatory Oversight Shifts from NERC to ESERC. was approved and published by Ancity Media Editor and may not be republished elsewhere without prior written permission from the Editor.
