The Nigerian Electricity Regulatory Commission (NERC) has transferred regulatory oversight of the Lagos State electricity market to the newly established Lagos State Electricity Regulatory Commission (LASERC).
In a post on its official X handle, NERC said the transfer is in compliance with the amended Constitution of the Federal Republic of Nigeria (CFRN) and the Electricity Act 2023 (Amended).
Recall that with the Electricity Act (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 Electricity Act 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.
NERC said that based on this, the government of Lagos State has 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 Lagos State.
Due to this transfer Order by NERC, Eko Electricity Distribution Plc (EKEDP) has been directed to incorporate a subsidiary (EKEDP SubCo) to assume responsibilities for intrastate supply and distribution of electricity in Lagos State from EKEDP.
EKEDP shall complete the incorporation of EKEDP SubCo within 60 days from 5th December 2024.
The subcompany shall apply for and obtain licence for the intrastate supply and distribution of electricity from LASERC, among other directives.
It also directed lIkeja Electric Plc (IE) to incorporate a subsidiary (IE SubCo) to assume responsibilities for intrastate supply and distribution of electricity in Lagos State from IE.
IE is also directed to complete the incorporation of IE SubCo within 60 days from 5th December 2024.
The subcompany shall apply for and obtain licence for the intrastate supply and distribution of electricity from LASERC, among other directives.
All transfers envisaged by the order are expected to be completed by 4th June 2025.
Recall that the Lagos State Electricity Law 2024, was enacted and signed into law by Governor Babajide Sanwo-Olu on December 3, 2024.
The NERC’s order aims to enhance local governance over energy supply and encourage private sector investment in Lagos, Nigeria’s commercial capital.
Governor Sanwo-Olu had emphasised that this regulatory autonomy is crucial for improving power supply reliability and attracting investments.
The establishment of LASERC is expected to create a more responsive regulatory environment tailored to Lagos’s unique energy needs.
The state’s electricity market is anticipated to serve as a model for other regions in Nigeria, promoting sustainable energy practices and innovation.
NERC’s decision reflects a broader trend across Nigeria, where several states have initiated similar regulatory frameworks since the Electricity Act’s passage.
States like Enugu, Ekiti, and Oyo have also set up their regulatory bodies, marking a significant shift towards decentralised energy management.
With this transfer, LASERC is tasked with overseeing electricity distribution companies in Lagos, ensuring compliance with regulations, and facilitating the development of independent power projects.
This initiative aims to reduce reliance on the national grid and improve service delivery for residents.
The transition marks a pivotal moment for Lagos’s energy landscape, promising enhanced efficiency and reliability in electricity supply while fostering an environment conducive to investment.