The Nigerian Electricity Regulatory Commission, NERC, has issued an order transferring regulatory oversight of the electricity market in Akwa Ibom State to the Akwa Ibom State Electricity Regulatory Commission, AKSERC.
The development was contained in information published on NERC’s website on Wednesday in Abuja, with the commission stating that the transfer is in compliance with the amended Constitution of the Federal Republic of Nigeria and the Electricity Act 2023 (as amended).
The commission said the order would transfer regulatory authority over intrastate electricity operations in Akwa Ibom from the federal commission to the state-owned regulator.
The commission explained that under the Electricity Act, NERC would continue to serve as the central regulator with oversight over inter-state and international electricity generation, transmission, supply, trading and system operations.
However, the Act also provides a framework for states that wish to establish and regulate their own intrastate electricity markets.
According to NERC, any state seeking to regulate its intrastate electricity market is required to formally notify the commission and request the transfer of regulatory authority over electricity operations within the state.
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As part of the transfer order, the commission directed the Port Harcourt Electricity Distribution Company, PHEDC, to incorporate a subsidiary, known as PHEDC SubCo, to take over responsibilities for intrastate electricity supply and distribution in Akwa Ibom.
The commission directed that the subsidiary be incorporated within 60 days. NERC further directed PHEDC SubCo to apply for and obtain the necessary licence from AKSERC to undertake intrastate electricity supply and distribution in the state.
The commission said the transfer order contained other directives aimed at ensuring a smooth transition of regulatory responsibilities from NERC to AKSERC. According to NERC, all transfers envisaged under the order are expected to be completed by February 17, 2027.
The development marks another step in the implementation of Nigeria’s evolving electricity regulatory framework, giving Akwa Ibom greater responsibility for managing and regulating electricity activities within its territory.
NAN
