NERC Transfers Regulatory Oversight of Kogi State’s Electricity Market to KSERC Following Compliance with Legal Requirements
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Furthermore, NERC has set a deadline for completing all transfers outlined in the order by March 12, 2025.
The Nigerian Electricity Regulatory Commission (NERC) has officially transferred regulatory oversight of Kogi State’s electricity market to the Kogi State Electricity Regulatory Commission (KSERC). This move comes after the state government’s adherence to the requirements set forth in the amended Constitution of the Federal Republic of Nigeria and the Electricity Act 2023 (Amended).
In a statement released on NERC’s official X (formerly Twitter) account on Wednesday, the commission outlined the legal foundation for this decision. They stated, “In compliance with the amended Constitution of the Federal Republic of Nigeria and the Electricity Act 2023 (Amended), the Nigerian Electricity Regulatory Commission has issued an order to transfer regulatory oversight of the electricity market in Kogi State to the Kogi State Electricity Regulatory Commission.”
NERC will continue to serve as the central regulator for inter-state and international activities related to electricity generation, transmission, supply, and trading. However, the Electricity Act of 2023 permits states to create and regulate their own intrastate electricity markets, as long as they formally notify NERC and meet all necessary legal requirements.
“The Electricity Act also requires any state planning to establish and regulate intrastate electricity markets to submit a formal notification detailing its processes and request NERC to transfer regulatory authority over electricity operations to the State Regulator,” the statement noted.
Kogi State has met the necessary requirements and formally requested the Nigerian Electricity Regulatory Commission (NERC) to oversee its intrastate electricity market. In response, NERC has issued an order outlining specific directives for the transfer process.
A key provision of the order mandates the Abuja Electricity Distribution Company to establish a subsidiary named AEDC SubCo, which will be responsible for the supply and distribution of electricity within Kogi State.
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