The Federal Authorities, by means of the Nigerian Electrical energy Regulatory Fee, has introduced the switch of regulatory oversight of the electrical energy market in Lagos State to the newly established Lagos State Electrical energy Regulatory Fee.
This was acknowledged in an announcement issued by NERC on X (previously Twitter) on Thursday.
The transfer follows the amended provisions of the Nigerian Structure and Electrical energy Act, 2023.
NERC stated the switch of regulatory oversight is in step with the amended Structure of the Federal Republic of Nigeria and the Electrical energy Act, 2023.
This improvement follows a complete course of per the necessities set forth within the Electrical energy Act of 2023, which permits states to imagine regulatory management of intrastate electrical energy markets, supplied NERC is notified and obligatory circumstances are met.
EA 2023 additionally retains NERC’s function because the central regulator overseeing interstate and worldwide electrical energy operations, together with technology, transmission, provide, commerce and system administration.
Whereas NERC continues to manage nationwide actions, LASERC would be the designated authority for the electrical energy market inside Lagos states.
Recall that two weeks in the past, Governor Babajide Sanwo-Olu signed the Lagos State Electrical energy Invoice 2024 into regulation.
The assertion learn: “In compliance with the amended Structure of the Federal Republic of Nigeria and the Electrical energy Act 2023 (Modification), the Nigerian Electrical energy Regulatory Fee (“NERC” or the “Fee”) has issued an order transferring regulatory oversight of the electrical energy market in Lagos State from the Fee to the Electrical energy Regulatory Fee of Lagos State.
“Do not forget that with EA 2023, the Fee retains its function as central regulator with regulatory oversight of technology, transportation, logistics, commerce and interstate/worldwide system operations.
“The EA additionally mandates that any state that intends to ascertain and regulate electrical energy markets throughout the state submit formal notification of its operations and requests NERC to switch regulatory authority over state electrical energy operations to the state regulator.
“Accordingly, the Lagos State Authorities has complied with the foregoing provisions of the legal guidelines, duly notified NERC and requested the switch of regulatory oversight of the intra-state electrical energy market in Lagos State.”
This shift displays the rising decentralization of regulatory authority within the Nigerian electrical energy sector, with states given extra autonomy in managing native power markets.
As a part of the switch course of, the NERC Order outlines a sequence of steps to make sure a easy transition of obligations to LASERC. Among the many key provisions of the order, “The NERC Switch Order accommodates the next provisions: Direct Eko Electrical energy Distribution Plc to ascertain a subsidiary (EKEDP SubCo) to imagine the obligations of intra-state provide and distribution of electrical energy in Lagos State from EKEDP.
“EKEDP should full the incorporation of EKEDP SubCo inside 60 days efficient December 5, 2024. The subsidiary should apply for and procure an intra-state electrical energy provide and distribution license from LASERC, amongst different directives.
“Directing Ikeja Electrical Plc to ascertain a subsidiary (IE SubCo) to take over the obligations of provide and distribution of electrical energy throughout the state in Lagos State from IE.
“IE shall full the incorporation of IE SubCo inside 60 days efficient December 5, 2024. The subsidiary shall apply for and procure an intra-state electrical energy provide and distribution license from LASERC, amongst different directives.”
The Committee additionally directs that each one transfers supplied for on this Order should be accomplished by June 4, 2025.
(Marks for translation) Electrical energy
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