The Nigerian Electricity Regulatory Commission (NERC) has issued an order transferring its regulatory oversight of the electricity market in Oyo State to the Oyo State Electricity Regulatory Commission.
In an order dated August 5 and signed by Sanusi Garba, its chairman, the NERC said the directive take effect from today August 6, 2024.
According to the commission, the order is to commence the process of the transfer of regulatory oversight for the intrastate electricity market in the state from NERC to Oyo State Electricity Regulatory Commission (OSERC), in accordance with the Constitution of the Federal Republic of Nigeria (CFRN) and the Electricity of Act 2023 (amended).
“Ibadan Electricity Distribution PLC (“IBEDC”) is hereby directed to incorporate a subsidiary (“IBEDC SubCo”) under the Companies and Allied Matters Act for the assumption of responsibilities for intrastate supply and distribution of electricity in Oyo State fron IBEDC,” the order reads.
“IBEDC shall complete the incorporation of IBEDC SubCo within 60 days from the effective date of this Order and, IBEDC SubCo shall apply for and obtain a licence for the intrastate supply and distribution of electricity from OSERC.
“IBEDC shall identify the actual geographic boundaries of Oyo State and carve out its network in Oyo State as a standalone network with the installation of boundary meters at all border points where the network crosses from Oyo State into another state.”
According to the order, as part of the transition process, IBEDC is mandated to create an asset register of all its power infrastructure located within Oyo state.
The commission also said the DisCo would evaluate and apportion “contractual obligations and liabilities attributable to IBEDC’s operations of its subsidiary in Oyo State”.
IBEDC, according to NERC, would identify all the applicable trading points for energy offtake for the operations of IBEDC SubCo in Oyo.
NERC asked IBEDC to “confirm the number of employees that are required to provide service to Oyo State as a standalone public utility and transfer the identified assets for operations in Oyo State, contractual obligations, liabilities and employees to IBEDC SubCo”.
NERC said all transfers contained in the order would be completed by February 5, 2025.
On April 22, Enugu and Ekiti states received approval from NERC to regulate their electricity markets.
The regulator, on April 23, transferred oversight of the electricity market in Ondo to the state’s electricity regulatory bureau (OSERB).
On July 1, the commission transferred regulatory oversight of the power market in Imo to the state’s electricity regulatory commission (ISERC).
Source: https://energynewsafrica.com
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