Power Sector: NERC Grants ISERC Regulatory Oversight Responsibilities In Imo State

The Nigeria Electricity Regulatory Commission (NERC), has transfered regulatory oversight responsibilities in Imo State to Imo State Electricity Regulatory Commission (ISERC)
in line with decentralisation of power generation, transmission and generation as provided by the Electricity Act 2023 (Amended) and the 1999 Constitution of Nigeria as amended.

It has further, directed Enugu Electricity Distribution Company (EEDC) to incorporate a subsidiary (EEDC SubCo) to assume responsibilities for intrastate supply and distribution of electricity in Imo State from EEDC.

These were contained in a recent Order issued by NERC aimed at breaking administrative bottlenecks associated with centralized regulation of the power sector.

However, the EA 2023 reserves for the Commission, the role as the central regulator with regulatory oversight on the inter-state/international generation, transmission, supply, trading and system operations.

The EA 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 Government of Imo 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 Imo State.

According to the NERC Order, “The transfer Order by NERC has the following provisions:
“Direct Enugu Electricity Distribution Company (EEDC) to incorporate a subsidiary (EEDC SubCo) to assume responsibilities for intrastate supply and distribution of electricity in Imo State from EEDC.

“EEDC shall complete the incorporation of EEDC SubCo within 60 days from 27th June 2024. The subcompany shall apply for and obtain licence for the intrastate supply and distribution of electricity from ISERC, among other directives.
All transfers envisaged by this order shall be completed by 31 December 2024.”