The Nigerian Electricity Regulatory Commission (NERC) has issued an order transferring its regulatory oversight of the electricity market in Oyo State to the Oyo State Electricity Regulatory Commission (OSERC), a media report indicated.
In an order dated August 5 and signed by Chairman Sanusi Garba, NERC stated that the directive would take effect from August 6, 2024.
According to the commission, the order initiates the process of transferring regulatory oversight for the intrastate electricity market in Oyo State from NERC to OSERC, in accordance with the Constitution of the Federal Republic of Nigeria (CFRN) and the amended Electricity Act of 2023.
“Ibadan Electricity Distribution PLC (IBEDC) is hereby directed to incorporate a subsidiary (IBEDC SubCo) under the Companies and Allied Matters Act for the assumption of responsibilities for intrastate supply and distribution of electricity in Oyo State from IBEDC,” the order reads.
IBEDC is required to complete the incorporation of IBEDC SubCo within 60 days from the effective date of this order. IBEDC SubCo must then apply for and obtain a licence for the intrastate supply and distribution of electricity from OSERC.
IBEDC must identify the actual geographic boundaries of Oyo State and establish its network in Oyo State as a standalone network, installing boundary meters at all points where the network crosses from Oyo State into another state.
As part of the transition process, IBEDC is mandated to create an asset register of all its power infrastructure located within Oyo State. Additionally, the DisCo must evaluate and apportion “contractual obligations and liabilities attributable to IBEDC’s operations of its subsidiary in Oyo State.”
NERC’s order requires IBEDC to identify all applicable trading points for energy offtake for the operations of IBEDC SubCo in Oyo and confirm the number of employees needed to provide service to Oyo State as a standalone public utility. The identified assets for operations in Oyo State, contractual obligations, liabilities, and employees will then be transferred to IBEDC SubCo.
All transfers detailed in the order must be completed by February 5, 2025.
Previously, on April 22, Enugu and Ekiti states received approval from NERC to regulate their electricity markets. On April 23, oversight of the electricity market in Ondo was transferred to the state’s electricity regulatory bureau (OSERB). On July 1, regulatory oversight of the power market in Imo was transferred to the state’s Electricity Regulatory Commission (ISERC).
