The Nigerian Electricity Regulatory Commission (NERC) has officially transferred regulatory oversight of the electricity market in Imo State to the Imo State Electricity Regulatory Commission (ISERC).

This transfer follows the stipulations of the EA 2023, which designates NERC as the central regulator for inter-state and international generation, transmission, supply, trading, and system operations.

The act, however,  allows states to establish and regulate their intrastate electricity markets, provided they notify NERC of their processes and formally request a transfer of regulatory authority.

NERC in an order issued on Monday stated that the Government of Imo State had met all the legal requirements, prompting the commission to issue an order to transfer regulatory oversight.

According to NERC, as part of the transfer, the Enugu Electricity Distribution Company (EEDC) is directed to create a subsidiary, EEDC SubCo, to manage the intrastate supply and distribution of electricity within Imo State.

It added that the subsidiary must be incorporated within 60 days from June 27, 2024, and will need to obtain the necessary licenses from ISERC.

“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 Imo State from the Commission to the Imo State Electricity Regulatory Commission (ISERC).

“Recall that with the EA 2023, the Commission retains the role as the central regulator with regulatory oversight on the inter-state/international generation, transmission, supply and 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.

“Based on this, the Government of Imo 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 Imo State.

“The transfer Order by NERC has the following provisions: Direct Enugu Electricity Distribution Company (EEDC) to incorporate a subsidiary (EEDC SubCo) to assume responsibilities for intrastate supply and distribution of electricity in Imo State from EEDC.

“EEDC shall complete the incorporation of EEDC SubCo within 60 days from 27th June 2024. The sub-company shall apply for and obtain a licence for the intrastate supply and distribution of electricity from ISERC, among other directives. All transfers envisaged by this order shall be completed by 31 December 2024”, the Commission stated.