The Nigerian Electricity Regulatory Commission (NERC) has issued an order delegating regulatory oversight of Edo State’s electricity market to the Edo State Electricity Regulatory Commission (ESERC), effective immediately. This directive, signed by NERC’s Vice-Chairman Musiliu Oseni on August 20, aligns with the amended Constitution of the Federal Republic of Nigeria and the Electricity Act (EA) 2023.
As per the EA 2023, NERC retains central regulatory authority over inter-state/international electricity operations, while states can establish and regulate intra-state electricity markets with proper notification and transfer of regulatory authority. Edo State has complied with these conditions, prompting NERC to transfer oversight to ESERC.
Consequently, NERC has directed Benin Electricity Distribution Company (BEDC) to establish a subsidiary, BEDC SubCo, to assume responsibilities for intra-state supply and distribution of electricity in Edo State. BEDC must complete the incorporation of BEDC SubCo within 60 days and obtain a license from ESERC. All transfers must be completed by February 20, 2025.
This development follows similar approvals and transfers of regulatory oversight in Enugu, Ekiti, Ondo, Imo, and Oyo states, demonstrating NERC’s commitment to decentralizing electricity regulation and empowering state-level regulatory bodies.
