HARRISON EDEH
THE Nigerian Electricity Regulatory Commission (NERC) has formally transferred regulatory oversight of the electricity market in Akwa Ibom State to the Akwa Ibom State Electricity Regulatory Commission (AKSERC).
NERC said the transfer was in compliance with the amended Constitution of the Federal Republic of Nigeria (CFRN) and the Electricity Act 2023 (Amended).
With this, Akwa Ibom joined other 15 states, such as Lagos, Edo States, Nassarawa,and others over the state’s electricity mandate following the constitutional amendment to drive an evolving Nigeria’s electricity market which allow states take investment and regulatory responsibilities.
The transfer,which was announced in an official order issued by NERC,on Tuesday,August 18,directed Port Harcourt Electricity Distribution Plc (PHEDC) to incorporate a subsidiary (PHEDC SubCo) to assume responsibilities for intrastate supply and distribution of electricity in Akwa Ibom State from PHEDC.
According to the NERC’s order,the PHEDC shall complete the incorporation of PHEDC SubCo within 60 days from 18th August 2026.
The sub-company shall also apply for and obtain licence for the intrastate supply and distribution of electricity from AKSERC, among other directives.
The regulator further directed that transfers envisaged by this order shall be completed by 17th February 2027.
It would be noted 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.
Advocate Times reports that the handover was on the heel of the decentralisation introduced by the Electricity Act 2023, which allows Nigerian states to set up their own electricity markets, regulate intrastate supply, and license local players.
The Act, which marked a shift from the federal government’s exclusive control over electricity, previously enshrined in the 1999 Constitution, however, retains NERC authority over interstate and international electricity generation, transmission, trading, and system operations.
Under the amended Act, it is required to transfer regulatory authority to any state that formally establishes a regulatory body and requests the transfer.
It would be noted further that in December 2024, NERC transferred the regulatory oversight of the electricity market in Lagos State to the newly established Lagos State Electricity Regulatory Commission.
