The Nigerian Electricity Regulatory Commission (NERC) has officially transferred regulatory oversight of the electricity market in Oyo State to the Oyo State Electricity Regulatory Commission (OSERC).
This decision which was contained in the Order of the commission, aligns with the provisions of the Electricity Act (EA) of 2023, empowering state governments to manage their electricity markets.
Recall that 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.
The directive seeks to facilitate OSERC’s ability to regulate local electricity distribution, enhancing operational efficiency and responsiveness to state-specific needs.
NERC had similarly transferred oversight to other states, including Ondo and Enugu towards promoting decentralised electricity regulation across the country.
The EA also mandates any state that intends to establish and regulate intrastate electricity markets to deliver a formal notification of its processes and requests the NERC to transfer the regulatory authority of electricity operations in the state to the State Regulator.
“Based on this, the government of Oyo State complied with the conditions precedent in the laws, duly notified NERC and requested for the transfer of regulatory oversight of the intrastate electricity market in Oyo State.
Following the order Ibadan Electricity Distribution Company (IBEDC) has been directed to incorporate a subsidiary (IBEDC SubCo) to assume responsibilities for intrastate supply and distribution of electricity in Oyo State from IBEDC.
Also, the IBEDC is required to complete the incorporation of IBEDC SubCo within 60 days from 6th August 2024.
The sub-company is also expected to apply and obtain licence for the intrastate supply and distribution of electricity from OSERC, among other directives.
“All transfers envisaged by this order shall be completed by 5th February 2025,” the commission mandated.
Oyo State governor, Engr. ‘Seyi Makinde had on February 9, signed into law the Oyo State Electricity Regulatory Commission Bill 2024 to give the state opportunity to develop its own roadmap to sustainable electricity.
At the signing ceremony which took place at his office in Ibadan, the governor stated that decentralisation of electricity generation, transmission and distribution signaled that Nigerians can access dividends of democracy through federalism with more powers devolved to the states.
Governor Makinde said, “This law will enable Oyo State generate, transmit and distribute electricity within the State.
“Amendments of the constitution like these is what we mean when we advocate for fiscal federalism. In years to come as we work towards energy sufficiency, our people can hold State Governments accountable on the issue of electricity supply.” (Leadership)