NERC Hands Over Edo Electricity Market to ESERC
The Nigerian Electricity Regulatory Commission (NERC) has officially handed over regulatory control of Edo State’s electricity market to the Edo State Electricity Regulatory Commission (ESERC).
This transfer, effective immediately, marks a significant milestone in Nigeria’s journey towards decentralized electricity regulation.
NERC also issued mini-grid generation permits to several companies, including MTN Communications Nigeria Limited, Golden Penny Power Limited, and Havenhill Synergy, to promote renewable energy and enhance electricity supply in the state.
The transfer of regulatory oversight is in line with the Electricity Act 2023, which empowers states to establish and regulate intrastate electricity markets. Edo State has met all necessary conditions, paving the way for NERC’s order.
As part of this transition, Benin Electricity Distribution Company is directed to establish a subsidiary, BEDC SubCo, to handle local electricity supply and distribution responsibilities. This subsidiary will apply for and obtain a license from ESERC, ensuring a seamless transfer of regulatory authority.
NERC retains its role as a central regulator, overseeing inter-state generation, transmission, supply, trading, and system operations. The transfer is expected to be completed by February 20, 2025, marking a significant step towards decentralized electricity regulation in Nigeria.
According to NERC, “The transfer of regulatory oversight aims to promote more effective regulation and development of the electricity market in Edo State.”
In the first quarter of 2024, NERC issued nine mini-grid permits with a total nameplate capacity of 52.57 megawatts, demonstrating its commitment to renewable energy and decentralized power generation.
