The newly established Ogun State Electricity Regulatory Commission will now have regulatory authority over the state’s electricity marketDays after granting regulatory authority to the Lagos State Electricity Regulatory Commission, the commission revealed this modificationThis move follows the 2023 Electricity Act and the amended provisions of the Nigerian Constitution
Henzodaily.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
The Nigerian Energy Regulatory Commission has stated that the newly formed Ogun State Electricity Regulatory Commission would now have regulatory control over the state’s energy market.
By June 4, 2025, the commission required that all transfers envisioned by this regulation be completed. Photo Credit: Contributor
Source: Getty Images
In a statement published on its official X feed on Monday, the commission disclosed this change, which occurred days after it had given the Lagos State Electricity Regulatory Commission regulatory authority.
This action comes after the Nigerian Constitution’s modified provisions and the 2023 Electricity Act.
According to NERC, the Electricity Act of 2023 and the Federal Republic of Nigeria’s modified Constitution both support the transfer of regulatory supervision.
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The clearance is a thorough procedure that complies with the power Act 2023’s standards, which permit states to take regulatory control of their intrastate power markets as long as they inform the NERC and fulfil the requirements.
The NERC’s Order specifies a number of actions to guarantee a seamless transfer of duties to LASERC as part of the transfer.
Additionally, the commission mandated that all transfers envisioned by this directive be finished by June 4, 2025.
Among the key provisions of the Order are,
“The transfer Order by NERC has the following provisions: Direct Eko Electricity Distribution Company, Ikeja Electric Plc and Ibadan Electricity Distribution Company 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 sub-companies shall apply for and obtain licences for the intrastate supply and distribution of electricity from OGERC, among other directives.
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“All transfers envisaged by this order shall be completed by 23rd June 2025. To view the Order, visit the NERC website.”
With states being granted greater autonomy in overseeing their local energy markets, this change represents the growing decentralization of regulatory authority in Nigeria’s electricity industry.
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Source: Henzodaily.ng