It sounds like a significant development in the regulatory landscape of the electricity market in Enugu State.
This transfer aligns with both constitutional amendments and the Electricity Act of 2023, ensuring compliance and potentially enhancing efficiency in regulatory oversight.
The statement clarifies that the Nigerian Electricity Regulatory Commission is transferring regulatory oversight of the electricity market in Enugu State to the Enugu State Electricity Regulatory Commission, in accordance with the amended Constitution of Nigeria and the Electricity Act of 2023.
This shift maintains the Nigerian Electricity Regulatory Commission's role as the central regulator for inter-state/international aspects of generation, transmission, supply, trading, and system operations.
The Electricity Act also stipulates that any state intending to establish and regulate intrastate electricity markets must formally notify the Nigerian Electricity Regulatory Commission (NERC) of its processes.
Upon receipt of such notification, NERC is mandated to transfer regulatory authority over electricity operations in the state to the State Regulator. This ensures a clear framework for the establishment and regulation of intrastate electricity markets in Nigeria.
The Government of Enugu State has fulfilled the conditions outlined in the laws by formally notifying NERC and requesting the transfer of regulatory oversight of the intrastate electricity market in Enugu State.
In response, NERC has issued an order with specific provisions, including directing the Enugu Electricity Distribution Company PLC to establish a subsidiary (EEDC SubCo) to handle intrastate supply and distribution of electricity in Enugu State.
The order mandates EEDC to complete the incorporation of EEDC SubCo within 60 days from April 22, 2024, and for the sub-company to apply for and obtain a license for intrastate supply and distribution of electricity from EERC. All transfers outlined in this order are to be completed by October 22, 2024.
From GoodyNews.
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