The Nigerian Electricity Regulatory Commission (NERC) has approved regulatory autonomy to the Imo State Electricity Regulatory Commission, transferring oversight of the electricity market in Imo State, as mandated by the Electricity Act 2023.
The signed order, obtained by our correspondent on Saturday, indicates that the transfer of regulatory authority will take effect on July 1, 2024, as confirmed by NERC Chairman Sanusi Garba.
According to NERC, the Imo State government has initiated the process of implementing the provisions of the recent constitutional amendment and the Electricity Act, and has satisfied the conditions precedent outlined in these laws.
The state, desirous of assuming regulatory oversight of the intrastate electricity market in Imo State, duly notified the commission and requested for the transfer of regulatory oversight of the intrastate electricity market in Imo State in compliance with the provisions of the Electricity Act.
The order stated that Section 230(3) of the Act mandates the commission to develop a transition plan and timeline for the transfer of regulatory oversight of the intrastate electricity market from NERC to ISERC upon receipt of a formal notification from the State.
As a result, NERC directed the Enugu Electricity Distribution Company to establish a subsidiary company, (“EEDC to SubCo”), for the purpose of managing the intrastate supply and distribution of electricity in Imo State.
“EEDC shall complete the incorporation of EEDC SubCo within 60 days from the effective date of this Order and, EEDC SubCo shall apply for and obtain a licence for the intrastate supply and distribution of electricity from ISERC.
“EEDC shall identify the actual geographic boundaries of Imo State and carve out its network in lmo State as a standalone network with the installation of boundary meters at all border points where the network crosses from Imo State into another state,” it was ordered.
Following the recent development, Imo State has become the fourth state to be granted autonomy to regulate its electricity market, alongside Enugu, Ondo, and Ekiti States.
