NERC Transfers Regulatory Oversight of Ogun State Electricity Market to OGERC
In line with the amended Constitution of the Federal Republic of Nigeria (CFRN) and the Electricity Act 2023 (Amended), the Nigerian Electricity Regulatory Commission (NERC) has officially transferred regulatory oversight of the electricity market in Ogun State to the Ogun State Electricity Regulatory Commission (OGERC).
The decision, announced via a formal order from NERC, follows the Ogun State Government’s compliance with the legal conditions required to establish and regulate its intrastate electricity market.
Under the Electricity Act 2023, NERC retains its central regulatory role, overseeing inter-state and international electricity generation, transmission, supply, trading, and system operations. However, the Act allows states to assume authority over intrastate electricity markets, provided they formally notify NERC and fulfill specified requirements. Ogun State successfully met these prerequisites, prompting the transfer of authority.
The NERC order includes the following directives:
- Incorporation of Subsidiaries: Eko Electricity Distribution Company (EKEDP), Ikeja Electric PLC (IE), and Ibadan Electricity Distribution Company (IBEDC) must establish subsidiaries—EKEDP SubCo, IE SubCo, and IBEDC SubCo respectively—responsible for the intrastate supply and distribution of electricity in Ogun State.
- Licensing by OGERC: These subsidiaries are required to apply for and obtain licenses from OGERC to operate within the state.
- Implementation Timeline: The electricity companies must complete the incorporation of their subsidiaries within 60 days from December 24, 2024, and all transfers of authority and operations must be finalized by June 23, 2025.
This regulatory shift marks a significant step in Ogun State’s energy sector, enabling it to independently manage its electricity market. It also reflects the broader decentralization trend in Nigeria’s power sector, aimed at enhancing efficiency and local accountability in electricity distribution and supply
