The Nigerian Electricity Regulatory Commission (NERC) has transferred its regulatory oversight roles in Oyo State to the Oyo State Electricity Regulatory Commission (OSERC) as part of its current efforts to improve the efficiency of the electricity market nationwide.
The commission gave this hint in a Public Notice, stressing that the devolution of the regulatory functions to OSERC aligns with the provisions of the Electricity Act 2023 and the 2023 amendments to the Constitution of the Federal Republic of Nigeria.
According to the federal electricity regulatory commission, the transfer of the oversight roles was sequel to the fulfillment of all legal requirements outlined in the Electricity Act 2023 and its notification by Oyo State Government to regulate the state’s electricity market.
The NERC stated: “In compliance with the amended Constitution of the Federal Republic of Nigeria (CFRN) 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 Oyo State from the Commission to the Oyo State Electricity Regulatory Commission (OSERC).
“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 Oyo State complied with the conditions precedent in the laws, duly notified NERC and requested for the transfer of the regulatory oversight of the intrastate electricity market in Oyo State”, it added.
The NERC transfer order directed the Ibadan Electricity Distribution Company (IBEDC) to incorporate a subsidiary –IBEDC SubCo – to take over the responsibilities for the intrastate supply and distribution of electricity in Oyo State from IBEDC, and also mandated IBEDC to complete the incorporation of the subsidiary within 60 days from August 6, 2024, amongst others.
