NERC Gives PHED 60-Days To Incorporate PHED SubCo To Oversee Interstate Power Supply As AKSERC Assumes Electricity Oversight 

The Nigeria Electricity Regulatory Commission has effected transfer of regulatory oversight of the electricity market in Akwa Ibom State from the Commission to the Akwa Ibom State Electricity Regulatory Commission (AKSERC).

Consequently, it ordered the Port Harcourt Electricity Distribution Company to incorporate a subsidiary (PHED SubCo) for the assumption of responsibilities for intrastate supply and distribution of electricity in Akwa Ibom State from PHED.

This development is in line with the provisions of Electricity Act 2023.

NERC further directed PHED to complete the incorporation of PHED SubCo within 60 days from the effective date of the Order, and PHED SubCo shall apply for and obtain a licence for the intrastate supply and distribution of electricity from AKSERC.

The Order was jointly signed by Dr. Musiliu O. Oseni, NERC Chairman and C. Akpeneye, Commissioner Legal, Licensing & Compliance.

Among other, PHED is directed to identify the actual geographic boundaries of its distribution zone and carve out its network in Akwa Ibom State as a standalone network with the installation of boundary meters at all border points where the network crosses from Akwa Ibom State into another state.

Also the PHED is to create an Asset Register of all its power infrastructure located within Akwa Ibom State; Evaluate and apportion contractual obligations and liabilities attributable to PHED’s operations of its subsidiary in Akwa Ibom State; Identify all the applicable trading points for energy offtake for the operations of PHED SubCo in Akwa Ibom State; Confirm the number of employees that are required to provide service to Akwa Ibom State as a standalone public utility; and Transfer the identified assets for operations in Akwa Ibom State, contractual obligations, liabilities and employees to PHED SubCo.

NERC assured that it shall prepare a register of licensees, permit holders, certificate holders and holders of any other authorisations from the Commission in Akwa Ibom State.

“The register shall be delineated along the lines of authorised activities and use of the national grid for their activities. A transfer of regulatory oversight notification shall be issued by the Commission to the companies in the register whose activities are limited within Akwa Ibom State, informing the entities of the transfer/assumption of regulatory oversight for their activities by AKSERC.

” All cross-border transactions involving the national grid shall be subject to the approval of the Commission in accordance with the CFRN and EA”, it added.

The Commission explained that the final end-user tariffs approved by AKSERC shall be the exclusive tariffs that apply in Akwa Ibom State, and all tariff policy support for end-use customers in Akwa Ibom State shall be the responsibility of the Akwa Ibom State Government.