From David Onuoja, Abuja
Lagos State has officially received the nod from the Nigerian Electricity Regulatory Commission (NERC), to take over regulatory oversight of the electricity market in the state.
In a press release by the Commission in Abuja yesterday, NERC said, This transfer of power is in line with the Constitution of the Federal Republic of Nigeria and the Electricity Act 2023, as amended.
With this development, the Lagos State Electricity Regulatory Commission (LASERC), will now be responsible for regulating the intrastate electricity market in Lagos.
However, NERC will retain its role as a central regulator, overseeing inter-state and international generation, transmission, supply, trading, and system operations.
This move is part of a broader effort to decentralize the electricity market in Nigeria, allowing states to take greater control over their own energy needs.
Other states, such as Enugu, Ekiti, and Ondo, have already received similar approvals from NERC.
Following this request, NERC in its transfer order has directed Eko Electricity Distribution Company (EKEDC) to incorporate a subsidiary (EKEDP SubCo) to assume responsibilities for intrastate supply and distribution of electricity in Lagos State from EKEDP.
The Commission said, EKEDP shall complete the incorporation of EKEDP SubCo within 60 days from 5th December 2024.
It also said that the subcompany shall apply for and obtain licence for the intrastate supply and distribution of electricity from LASERC, among other directives.
NERC equally directed 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.
While IE shall also complete the incorporation of IE SubCo within 60 days from 5th December 2024.
The Commission added that the subcompany shall apply for and obtain licence for the intrastate supply and distribution of electricity from LASERC, among other directives.
“All the transfers envisaged by the order shall be completed by 4th June 2025”, it said.
