Milcah Tanimu
The Nigerian Electricity Regulatory Commission (NERC) has issued an order transferring regulatory authority over the electricity market in Enugu State to the Enugu State Electricity Regulatory Commission (EERC). This marks the first instance of NERC delegating such authority to a state-owned regulatory body, effective from May 1, 2024.
Under the amended Constitution of the Federal Republic of Nigeria and the Electricity Act 2023 (Amended), states now have the mandate to manage and regulate their electricity markets. The Enugu State Government, in compliance with these laws, formally notified NERC and requested the transfer of regulatory oversight.
As per the new legal framework, EERC holds exclusive authority to set and adopt end-user electricity tariffs within Enugu State, tailored to local conditions. However, any electricity sourced from grid-connected plants and related tariffs for generation and transmission services must still receive NERC approval, ensuring alignment with national energy policies.
The Enugu Electricity Distribution Company PLC (EEDC) is mandated to establish a subsidiary, EEDC SubCo, exclusively for supplying and distributing electricity within Enugu State. This subsidiary must secure a license from EERC and operate independently of networks in neighboring states.
NERC will retain its role as the central regulator for inter-state and international electricity transactions, overseeing large-scale power generation plants, high voltage transmission networks, and the national grid’s overall system operation.
States, including Enugu, will regulate electricity generation, transmission, and distribution within their territories, promoting rural electrification projects and integrating renewable energy sources into local grids.
The decentralization of regulatory powers to states like Enugu signifies a significant shift towards localized energy management, allowing states to tailor energy policies to meet residents’ specific needs.
NERC’s decision to cede control to EERC represents a significant evolution in Nigeria’s energy regulation approach, potentially serving as a blueprint for other states across the federation.