The Nigerian Electricity Regulatory Commission, NERC has announced the transfer of regulatory oversight for Kogi State’s electricity market to the Kogi State Electricity Regulatory Commission, KSERC.
This decision aligns with the amended Constitution of the Federal Republic of Nigeria and the Electricity Act 2023 (Amended).
Based on NERC’s statement, the move complies with the Electricity Act 2023, which retains NERC’s role as the central regulator for inter-state and international aspects of the electricity sector, including generation, transmission, supply, and system operations. The Act also allows states to establish and regulate their own intrastate electricity markets, provided they notify NERC and meet certain conditions.
The Kogi State Government has fulfilled these requirements by formally notifying NERC and requesting the transfer of regulatory authority for the intrastate electricity market. This transition aims to enhance local oversight and management of electricity operations within Kogi State.
NERC has also mandated AEDC to create a new subsidiary, AEDC SubCo, to handle the intrastate supply and distribution of electricity in Kogi State.
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AEDC is required to complete the incorporation of AEDC SubCo within 60 days from September 13, 2024. The new subsidiary must apply for and obtain a license for intrastate electricity supply and distribution from KSERC, in line with the transfer order.
All aspects of the transfer are expected to be finalized by March 12, 2025, ensuring a smooth transition of responsibilities for electricity operations in Kogi State.
NERC is an independent regulatory body with authority for the regulation of the electric power industry in Nigeria. NERC was formed in 2005 under the Obasanjo administration’s economic reform agenda through the Electric Power Sector Reform Act, 2005 for formation and review of electricity tariffs, transparent policies regarding subsidies, promotion of policies that are efficient and environmentally friendly, and also including forming and enforcing of standards in the creation and use of electricity in Nigeria.
NERC was instituted primarily to regulate the tariff of power generating companies owned or controlled by the government, and any other generating company which has a licence for power generation and transmission of energy, and distribution of electricity.
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