The Nigerian Electricity Regulatory Commission (NERC) has announced the transfer of Regulatory Oversight of the Electricity Market in Lagos State to the Lagos State Electricity Commission (LASERC).
In a statement yesterday, it said this is in compliance with the amended Constitution of the Federal Republic of Nigeria (CFRN) and the Electricity Act 2023 (Amended).
It would be recalled that the EA 2023 allowed the commission to retain the role as a 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 Lagos 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 Lagos State.”
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It said the transfer Order by NERC has the following provisions: Direct Eko Electricity Distribution Plc (EKEDP) to incorporate a subsidiary (EKEDP SubCo) to assume responsibilities for intrastate supply and distribution of electricity in Lagos State from EKEDP.
“While EKEDP shall complete the incorporation of EKEDP SubCo within 60 days from 5th December 2024. The subcompany shall apply for and obtain licence for the intrastate supply and distribution of electricity from LASERC, among other directives. Similarly, it directs Ikeja Electric Plc (IE) to incorporate a subsidiary (IE SubCo) to assume responsibilities for intrastate supply and distribution of electricity in Lagos State from IE. IE shall complete the incorporation of IE SubCo within 60 days from 5th December 2024. The subcompany shall apply for and obtain licence for the intrastate supply and distribution of electricity from LASERC, among other directives. All transfers envisaged by this order shall be completed by 4th June 2025.”
This brings into a total of 8 the states that have been granted the power to regulate the electricity markets in their states.
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