The Nigerian Electricity Regulatory Commission (NERC) has officially transferred its regulatory oversight of the electricity supply market in Oyo State to the newly established Oyo State Electricity Regulatory Commission (OSERC).
In a statement titled “Transfer of Regulatory Oversight of the Electricity Market in Oyo State to OSERC,” NERC explained that this decision aligns with the amended Constitution of the Federal Republic of Nigeria (CFRN) and the Electricity Act (EA) 2023. While NERC retains its role as the central regulator overseeing inter-state and international electricity generation, transmission, supply, trading, and system operations, it now allows states to regulate their intrastate electricity markets.
The EA 2023 mandates that any state wishing to establish and regulate its own intrastate electricity market must formally notify NERC and request the transfer of regulatory authority. The Government of Oyo State complied with these requirements, leading to the transfer of regulatory oversight to OSERC.
The transfer order includes specific directives, such as requiring the Ibadan Electricity Distribution Company (IBEDC) to create a subsidiary, IBEDC SubCo, responsible for intrastate electricity supply and distribution in Oyo State. IBEDC is required to incorporate this subsidiary within 60 days from August 6, 2024, and the new entity must obtain a license from OSERC. All transfers stipulated by this order are expected to be completed by February 5, 2025.
This move follows similar actions by other states under the EA 2023. Enugu State assumed control of its electricity market in April 2024, followed by Imo State in July 2024. Oyo State is the latest to apply for and obtain management authority over its electricity industry in August 2024.
