TheCable

The Nigerian Electricity Regulatory Commission (NERC) has transferred oversight of the electricity market in Ondo to the state’s electricity regulatory bureau (OSERB).

In a statement on Tuesday, the commission said the decision complies with the amended Constitution of the Federal Republic of Nigeria (CFRN) and the Electricity of Act 2023 (amended).

The NERC, according to the statement, would remain the central regulator, overseeing inter-state and international generation, transmission, supply, trading, and system operations in line with the electricity Act.

“In compliance with the amended Constitution of the Federal Republic of Nigeria (CFRN) and the Electricity Act 2023 (Amended), the Nigerian Electricity Regulatory Commission (NERC or the Commission) has issued an order to transfer regulatory oversight of the electricity market in Ondo State from the Commission to the Ondo State Electricity Regulatory Bureau (OSERB),” NERC said.

“Recall that with the EA 2023, the Commission retains the role as central regulator with regulatory oversight on the inter-state/international generation, transmission, supply, trading and system operations.

“The EA also mandates any state that intends to establish and regulate intrastate electricity markets to deliver a formal notification of its processes and requests NERC to transfer regulatory authority over electricity operations in the state to the State Regulator.

“Based on this, the Government of Ondo State complied with the conditions precedent in the laws, duly notified NERC and requested for the transfer of regulatory oversight of the intrastate electricity market in Ondo State.”

The NERC also directed the Benin Electricity Distribution Company (BEDC) to incorporate a subsidiary (BEDC SubCo) to take over the duties of supplying and distributing electricity within Ondo state from BEDC.

The commission said the incorporation of the subsidiary must be completed within 60 days starting from April 22, adding that the sub-company must apply for and obtain a licence for intrastate electricity supply and distribution from OSERB.

NERC noted that all transfers envisaged by this order must be completed by October 22.

On April 22, the commission transferred oversight of the electricity markets in Enugu and Ekiti to the state governments.