The Nigerian Electricity Regulatory Commission (NERC) on Tuesday, August 6, announced the transfer of regulatory oversight of electricity market in Oyo State to the Oyo State Electricity Regulatory Commission (ISERC).
This was contained in an order dated 5th August 2024, titled: “Order No: NERC/2024/110.”
The commission noted that the transfer takes effect from August 6, 2024.
“This order takes effect from 6 August, 2024,” said the chairman Engr. Sanusi Garba and Commissioner Legal Licensing and Compliance , Barrister Dafe Akpeneye, who signed the document.
Recall that NERC exercises regulatory oversight of the Nigerian Electricity Supply Industry (“NESI”) as the apex sectoral regulator in accordance with powers conferred by the Electricity Act 2023 (“EA” or the “Act”).
The electricity market in the Federal Republic of Nigeria was previously centralised and the move to decentralisation was achieved when presidential assent was granted to the amendment of relevant portions of the Constitution of the Federal Republic of Nigeria (“CFRN”) on 17 March 2023.
Paragraph 14(b) Part II of the Second Schedule to the 1999 CFRN which provides that “a House of Assembly may make laws for the State with respect to generation, transmission, and distribution of electricity to areas not covered by a national grid system within that State.”
The order noted: “In compliance with the amended Constitution of the Federal Republic of Nigeria (CFRN) and the Electricity Act 2023 (Amended), the Nigerian Electricity Regulatory Commission (“NERC” or the “Commission”) has issued an order to transfer regulatory oversight of the electricity market in Oyo State from the Commission to the Oyo State Electricity Regulatory Commission (OSERC).”
With the EA 2023, the Commission retains the role as a central regulator with regulatory oversight on the inter-state/international generation, transmission, supply, trading and system operations.
