From David Onuoja, Abuja
In compliance with the terms and conditions of Nigerian Electricity Regulatory Commission (NERC) and the Electricity Act of 2023 by the Government of Kogi State, NERC, has approved the electricity market oversight to the state KSERC.
In a release this morning by the Agency, it said that Kogi State Government having and duly notified NERC and requested for the transfer of regulatory oversight of the intrastate electricity market in Kogi State; is duly approved.
Now Kogi is among the early and first States in the Country to be approved of the right to have a regulatory oversight of electricity market in Nigeria.
According to NERC, “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 Kogi State from the Commission to the Kogi State Electricity Regulatory Commission (KSERC).
“It could be Recall that 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.
“Based on this, the Government of Kogi 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 Kogi State” it said.
The Commission therefore, directed Abuja Electricity Distribution Company (AEDC), to incorporate a subsidiary (AEDC SubCo), to assume responsibilities for intrastate supply and distribution of electricity in Kogi State from AEDC.
It also urged AEDC to complete the incorporation of AEDC SubCo within 60 days from 13th September 2024. The subcompany shall apply for and obtain licence for the intrastate supply and distribution of electricity from KSERC, among other directives.
Adding that, all transfers envisaged by this order shall be completed by 12th March 2025.
