EEDC halts operation as EERC begins electricity regulation in Enugu

The Enugu Electricity Distribution Company (EEDC), on Tuesday, halted operations in the state as the Enugu State Electricity Regulatory Commission (EERC) assumed full electricity regulation in the state.

The historic move followed the expiration of the transition period for the transfer of regulatory oversight from the Nigeria Electricity Regulatory Commission (NERC) to the state agency.

The transfer makes Enugu State the first in the country to commence the development of a sub-national electricity market in both Nigeria and Africa.

Speaking at the event, the Chairman, EERC, Chijioke Okonkwo, described the transfer of regulatory power to EERC as “significant”.

According to him, the development marks the beginning of the development of sub-national electricity markets not only in Nigeria or West Africa, but across the African continent.

Okonkwo said that EERC had issued licence to Mainpower Electricity Distribution Limited, an EEDC subsidiary set up to take over the operations of EEDC in Enugu State from Wednesday midnight.

The EERC boss said that Fedikore Limited, the first Independent Power Project (IPP), was also issued licence to build a power plant with a nameplate capacity of 10 mega watts.

He also said that following the enactment of the Enugu State Electricity Law, 2023, and the setting up of EERC, Enugu State emerged in April as the first state to be handed the regulatory power over its electricity market by NERC.

Okonkwo said that with a six-month transition period, which elapsed on Tuesday, the state became empowered to fully exercise the constitutional right to develop its electricity sector across the value chain of generation, transmission, distribution and retailing services.

This, he said, includes Mini-Grid and Off-Grid electrification solutions.

“Today completes the six months transition for the transfer of regulatory authority from the national regulator, NERC, to the EERC, as stipulated in Section 230 of the Electricity Act 2023, and the consequential order of NERC, dated April 22.

“Today, we now take on the monumental responsibility of regulating and guiding the electricity sector in Enugu State.

“This assumption of regulatory oversight is not just about the transfer of authority, but represents a shared vision for a more efficient, responsive, and innovative electricity market.

“NERC has laid a strong foundation, and we are confident that EERC will build on that legacy to bring about positive changes for the people of Enugu State and beyond, in line with Enugu’s realities,” he said.

Okonkwo said their mission was to ensure that Enugu had access to reliable, cost effective, and sustainable electricity, while promoting fairness and innovation in the sector.

“We are here to enhance the quality of life for all residents, businesses, and stakeholders by creating an efficient regulatory environment that fosters growth and transparency,” he said.

He commended Gov. Peter Mbah’s administration for its zero political interference in the affairs of the commission.

“I must say that we have enjoyed a tremendous level of independence from the State Government activities and our own role.

“We have been established and supported to take off.

“However, we have also been given the authority and independence to develop the regulations and policies that we have put in place, not minding how they impact on the State Government,” he said.

A Board member of Mainpower Electricity Distribution Limited, Kester Enwereonu, assured the people of the state of a better electricity experience in all ramifications.

“We are not just identifying with EERC as the pacesetter, Mainpower will also want to be the pacesetter.

“We are assuring you that in the coming weeks, months, and years, we are going to have an improved service to the people of Enugu State,” he said.

Also, the Founder and Managing Director of Fedikore Limited, Dr Chukwueloka Umeh, described what has happened in Enugu as revolutionary, expressing his firm’s joy to partner with EERC.

“The EERC has done a fantastic job in starting this revolution that is about to happen and we are pleased to be a part of it.

“Fedikore was set up last year as the first IPP in Enugu State.

“We built four mega watts plant at 9th Mile to supply power to the Enugu State Water Corporation here in Enugu.

“So, we are very committed to working with the state, especially given the leadership provided by both the government and EERC so far,” Umeh said.

NewsDirect
NewsDirect
Articles: 50615