The Nigerian Electricity Regulatory Commission (NERC) on Wednesday disclosed that it had formally transferred its regulatory oversight of the electricity market in Akwa Ibom State to the Akwa Ibom State Electricity Regulatory Commission (AKSERC), representing a major step in its sustained drive towards a multi-tier electricity market in the country.
In a public notice posted on its official X handle, the commission stated that under the transfer order, the Port Harcourt Electricity Distribution Company Plc (PHEDC) will establish a subsidiary to take over responsibility for electricity supply and distribution within Akwa Ibom State.
The NERC stated that the transfer of regulatory powers of the electricity market to Akwa Ibom SERC, the transition of whch is expected to be completed in February 2027, was made in compliance with the amended Constitution and the Electricity Act 2023.
With the latest authorization, Akwa Ibom State has become the 17th state to receive a transfer order for the regulation of its intrastate electricity market after Gombe became the 16th state in July this year.
The NERC Public Notice stated inter alia: “In compliance with the amended Constitution of the Federal Republic of Nigeria and the Electricity Act 2023 (Amended), the Nigerian Electricity Regulatory Commission (“NERC” or the “Commission”) has issued an order to transfer regulatory oversight of the electricity market in Akwa Ibom State from the Commission to the Akwa Ibom State Electricity Regulatory Commission.
“With the EA 2023, the Commission retains 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”, it added.
Based on the latest order, the PHEDC has been directed to incorporate a subsidiary, to be known as PHEDC SubCo, which will be responsible for intrastate electricity supply and distribution in Akwa Ibom State.
The NERC directed that the PHEDC shall complete the incorporation of PHEDC SubCo within 60 days from 18th August 2026 and that the subcompany shall apply for and obtain licence for the intrastate supply and distribution of electricity from AKSERC, among other directives.
The order anticipated that all transfer arrangements from the PHEDC to the AKSERC will be completed by February 17, 2027, implying that the latter will eventually become the primary regulator of electricity activities within Akwa Ibom State.
It would be recalled Governor Umo Eno had in June this inaugurated the AKSERC to drive reforms in the state’s electricity sector and improve power supply. The governor directed the management of the commission to work with PHEDC and other stakeholders towards establishing a state electricity distribution structure.