Oyo Govt receives NERC approval to regulate electricity

The Oyo State Government has obtained the approval of the Nigerian Electricity Regulatory Commission (NERC) to regulate electricity in the state.

Recall that former President Muhammadu Buhari-led administration had signed into a law proposing the devolution of powers in the electricity sector which was previously under the exclusive list reserved for the federal government.

With the approval, Oyo State joins its peers such as Ondo State to regulate its electricity market.

According to the notice issued by NERC yesterday, all transfers envisaged by the order shall be completed by 5th February 2025.

The regulator transferred regulatory oversight of the electricity market in Oyo State from the Commission to the Oyo State Electricity Regulatory Commission (OSERC).

The notice issued by the regulator reads in part:

“Recall 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.

“The EA also mandates any state that intends to establish and regulate intrastate electricity markets to deliver a formal notification of its processes and requests NERC to transfer regulatory authority over electricity operations in the state to the State Regulator.

“Based on this, the Government of Oyo State complied with the conditions precedent in the laws, duly notified NERC and requested for the transfer of regulatory oversight of the intrastate electricity market in Oyo State.

“The transfer Order by NERC has the following provisions:- Direct Ibadan Electricity Distribution Company (IBEDC) to incorporate a subsidiary (IBEDC SubCo) to assume responsibilities for intrastate supply and distribution of electricity in Oyo State from IBEDC.

“IBEDC shall complete the incorporation of IBEDC SubCo within 60 days from 6th August 2024. The subcompany shall apply for and obtain a licence for the intrastate supply and distribution of electricity from OSERC, among other directives.”