NERC Grants Ogun State Electricity Market Regulatory Oversight Power

NERC Building, Abuja

“The transfer Order by NERC has the following provisions: – Direct Eko Electricity Distribution Company (EKEDP), Ikeja Electric PLC (IE) and Ibadan Electricity Distribution Company (IBEDC) to incorporate subsidiaries: EKEDP SubCo, IE SubCo and IBEDC SubCo respectively to assume responsibilities for intrastate supply and distribution of electricity in Ogun State from EKEDP, IE and IBEDC. – EKEDP, IE and IBEDC shall complete the incorporation of EKEDP SubCo, IE SubCo and IBEDC SubCo within 60 days from 24th December 2024." NERC 

The nation's determination to improved power supply including regulatory oversight of the electricity market to states has witnessed an increase as the major regulator, Nigerian Electricity Regulatory Commission (NERC) recently approved the Ogun State Electricity Regulatory Commission (OGERC). This brings to nine, the number of states with such regulatory oversight powers.

The eight states with such regulatory oversight approvals include: Lagos, Enugu, Ondo, Ekiti and Kogi states. Others are, Oyo, Imo and Edo states.

The National Electricity Regulatory Commission NERC stated this through its Order No: NERC/ 2024/165 pasted on its website on Monday. 

It noted that, "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) has issued an order to transfer regulatory oversight of the electricity market in Ogun State from the Commission to the Ogun State Electricity Regulatory Commission (OGERC).

It further recalled that with the EA 2023, the Commission retains the role as a 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.


According to NERC, “Based on this, the Government of Ogun 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 Ogun State.

“The transfer Order by NERC has the following provisions: – Direct Eko Electricity Distribution Company (EKEDP), Ikeja Electric PLC (IE) and Ibadan Electricity Distribution Company (IBEDC) to incorporate subsidiaries: EKEDP SubCo, IE SubCo and IBEDC SubCo respectively to assume responsibilities for intrastate supply and distribution of electricity in Ogun State from EKEDP, IE and IBEDC. – EKEDP, IE and IBEDC shall complete the incorporation of EKEDP SubCo, IE SubCo and IBEDC SubCo within 60 days from 24th December 2024.

“The subcompanies shall apply for and obtain licences for the intrastate supply and distribution of electricity from OGERC, among other directives. All transfers envisaged by this order shall be completed by 23rd June 2025.”

OPTIMUM TIMES  recalls at the 8th edition of the Africa Energy Market Place (AEMP) Nigeria, in Abuja,  Minister of Power, Adebayo Adelabu, had indicated halting transfer of electricity regulatory powers to states,  citing foreseeable difficulties in coordination among states.

He said those (states) already granted the electricity market regulatory powers will be used as pilot study for about six months
because of the imperative to ensure state governments and stakeholders in the power sector properly understand what is required to operate an electricity market.

Adelabu argued that if the market under a single regulator is currently problematic, it is a no-brainer that multiple regulatory agencies set up by the states will be chaotic.

He maintained that it was therefore important to embark on a pilot phase of the handing over of regulatory power of the states to see if it works or not and make amends where necessary.

Adelabu said, “We must tread carefully, we should not be in a hurry. The market is not mature, it is not mature enough. With everything centralised for a single regulator, we have a myriad of issues.

“Now we tend to create a regulatory framework across 36 states, it is something that we must do in a highly systematic and strategic manner. We need just a couple of states as a pilot, which is why I halted granting of further regulatory autonomy to states.”