Nigerian Electricity Regulatory Commission Transfers Oversight to Oyo State
The Nigerian Electricity Regulatory Commission (NERC) has relinquished its regulatory control over Oyo State’s electricity market, paving the way for the Oyo State Electricity Regulatory Commission (OSERC) to assume oversight responsibilities.
This development is a direct result of the state government’s proactive implementation of the Electricity Act 2023 and recent constitutional amendments.
As outlined in NERC’s Order No: NERC/2024/110, signed by Chairman Sanusi Garba, the transfer of authority takes effect on August 6, 2024. The order meticulously outlines a transition plan, addressing critical aspects of the handover and ensuring a seamless transfer of regulatory oversight.
The Oyo State Government’s formal request for the transfer, coupled with its fulfillment of necessary conditions, prompted NERC’s directive to the Ibadan Electricity Distribution PLC (IBEDC) to establish a subsidiary, IBEDC SubCo. This new entity will manage intrastate electricity supply and distribution in Oyo State, subject to obtaining a license from OSERC within 60 days.
The order mandates IBEDC to delineate its network, create an asset register, and transfer identified assets, liabilities, and employees to IBEDC SubCo. NERC will compile a register of licensees, notifying them of the transfer, while OSERC will assume exclusive responsibility for determining end-user tariffs. NERC will retain approval authority for contracts and tariffs related to generation and transmission services.
The transition is expected to be completed by February 5, 2025.
