… Benin DisCo ordered to establish subsidiary for in-state electricity distribution in Ondo State
Oredola Adeola
After eight months of engagement the Nigerian Electricity Regulatory Commission( NERC) has transferred power for the take over of regulatory oversight of the electricity market in Ondo to the Ondo State Electricity Regulatory Bureau (OSERB) in compliance with the amended Constitution of the Federal Republic of Nigeria (CFRN) and the Electricity Act 2023 (Amended).
The Commission has therefore revealed that the transfer of regulatory oversight of the electricity market in Ondo State from the Commission to the Ondo State Electricity Regulatory Bureau (OSERB) should be completed by 22 October 2024, following the order issued for the transfer of regulatory oversight of the electricity market in Enugu and Ekiti states.
This was contained in statement released by NERC and obtained by Advisors Reports on Tuesday.
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.
The NERC’s statement confirmed that the Electricity Act 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 Commission has therefore noted that the Government of Ondo State has complied with the conditions precedent in the laws, and has duly notified NERC and requested for the transfer of regulatory oversight of the intrastate electricity market in Ondo State.
It further stated that the transfer Order has the following provisions:
“Direct Benin Electricity Distribution Company (BEDC) to incorporate a subsidiary (BEDC SubCo) to assume responsibilities for intrastate supply and distribution of electricity in Ondo State from BEDC.
“BEDC shall complete the incorporation of BEDC SubCo within 60 days from 22 April 2024 and the subcompany shall apply for and obtain licence for the intrastate supply and distribution of electricity from OSERB, among other directives,” NERC said.
Advisors Reports’ check showed that in August 2023, Razaq Obe, the Commissioner for Energy and Mineral Resources in Ondo State, began the discussions and developments regarding the Ondo State Electricity Regulatory Bureau (OSERB) and the state’s independent power plant.
Through the provisions of the Electricity Act 2023, the Ondo State Government has met the two legal requirements for transitioning electricity regulations from NERC to the Bureau.
The Bureau, as confirmed by NERC, has therefore issued a formal transition notice to NERC, the BPE / NCP and Benin Electricity Distribution Company.
