IN line with the Electricity Act 2023, as amended, the Nigerian Electricity Regulatory Commission (NERC) has transferred its regulatory oversight of the electricity market in Plateau State to the Plateau State Electricity Regulatory Commission (PSERC).
NERC announced this in a statement issued on Friday, March 14.
It said, “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 Plateau State from the Commission to the Plateau State Electricity Regulatory Commission (PSERC).
“Recall that with the EA 2023, the Commission retains the role as a central regulator with regulatory oversight of inter-state/international generation, transmission, supply, trading and system operations.”
The electricity sector regulator noted that the Act also mandates any state intending to establish and regulate an intrastate electricity market to formally notify NERC of its processes and request the transfer of regulatory authority over electricity operations to the state regulator.
“Based on this, the Government of Plateau 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 Plateau State,” NERC stated.
According to the electricity regulator, its transfer order directs Jos Electricity Distribution Plc (JED) to incorporate a subsidiary, JED SubCo, to assume responsibility for the intrastate supply and distribution of electricity in Plateau State.
It added that JED must complete the incorporation of JED SubCo within 60 days from March 12, 2025. Additionally, the sub-company must apply for and obtain a licence for the intrastate supply and distribution of electricity from PSERC, among other directives.
NERC further directed that all transfers outlined in this order must be completed by September 12, 2025.
With this order, Plateau State has joined Lagos, Imo, Ogun, Ondo, Ekiti, Enugu, Niger, Edo, and Oyo in regulating its electricity market.
In an exclusive interview, the Executive Director of PowerUp Nigeria and power sector governance expert, Adetayo Adegbemle, told The ICIR that the new Electricity Act would enable states to develop independent power markets.
In an exclusive interview, the executive director of PowerUp Nigeria and a power sector governance expert, Adetayo Adegbemle, told The ICIR that the new Electricity Act would enable states to develop independent power markets.
Adegbemle has noted that the amendment would open up the power sector for investments, both at the state and national levels.
However, he believes that not all states will be able to establish their own electricity markets. Those with the capacity to do so will benefit, and this should ease the burden on the national grid.
The ICIR reported on March 17, 2023, that former President Muhammad Buhari signed the amendment Electricity Act into law, allowing all states in the country to license, generate, transmit and distribute electricity.