… NERC orders Benin DisCo, Ibadan DisCo to establish subsidiaries for in-state electricity distribution in Ekiti State
Oredola Adeola
The Nigerian Electricity Regulatory Commission (NERC) has handed over the regulatory oversight of the electricity market in Ekiti State from the Commission to the Ekiti State Electricity Regulatory Bureau (EERB) in compliance with the amended constitution of the Federal Republic of Nigeria (CFRN) and the Electricity Act 2023 (Amended).
NERC therefore emphasised that all transfers envisaged by that particular order shall be completed by 22 October 2024, similar to the order issued for the transfer of regulatory oversight of the electricity market in Enugu state from the Commission to Enugu Electricity Regulatory Commission (EERC).
This was contained in statement released by NERC and obtained by Advisors Reports on Monday.
According to the Commission retains the role as central regulator with regulatory oversight on the inter-state/international generation, transmission, supply, trading and system operations, based on the provision of the EA 2023.
Based on this, Advisors Reports gathered that the Government of Ekiti State complied with the condition’s precedent in the laws.
NERC explained that the Ekiti State Government duly notified NERC and requested for the transfer of regulatory oversight of the intrastate electricity market in Ekiti State.
The Commission has therefore emphasised that the transfer Order by NERC has the following provisions: – Direct Benin Electricity Distribution Company (BEDC) and Ibadan Electricity Distribution Company PLC (IBEDC) to incorporate a subsidiary (BEDC SubCo and IBEDC SubCo) to assume responsibilities for intrastate supply and distribution of electricity in Ekiti State from BEDC and IBEDC.
“BEDC and IBEDC shall complete the incorporation of BEDC SubCo and IBEDC SubCo within 60 days from 22 April 2024 and the subcompanies shall apply for and obtain licences for the intrastate supply and distribution of electricity from EERB, among other directives.
In exercising that constitution mandate, Advisors Reports gathered that Ekiti State had taken a significant step in exercising its constitutional mandate by passing the Ekiti State Electric Power Sector Law 2023 (Law No. 11 of 2023), which was assented to by Mr. Biodun Oyebanji, the Executive Governor of Ekiti State on October, 16 2023.
Advisors Reports gathered that the new law establishes the Ekiti State Electricity Regulatory Bureau (EKSERB), which is responsible for regulating and enforcing electricity matters and standards across various markets segments in Ekiti State.
The Bureau is also tasked with issuing licenses and permits for vendors and marketers of energy products.In addition, a specialized department called Ekiti State Electricity Management Service Department (ESEMSD) has been created within the State Electricity Regulatory Bureau.
This department will take over the functions previously carried out by the National Electricity Management Services Agency (NEMSA), including electrical inspection, monitoring, and certification of new and existing electricity networks.
ESEMSD will also enforce statutory technical electrical standards and regulations for safety and security across the State. This move is aimed at ensuring the safety and security of electricity networks and promoting efficient and reliable electricity supply in Ekiti State.
