The Nigerian Electricity Regulatory Commission NERC, has issued an order to transfer regulatory oversight of the electricity market in Akwa Ibom State from the Commission to the Akwa Ibom State Electricity Regulatory Commission (AKSERC) in compliance with the amended constitution and the electricity act 2023 as amended.
The Commission in a latest statement said it continues to retain the role as central regulator with regulatory oversight on the inter-state/international generation, transmission, supply, trading and system operations as contained in the provisions of the electricity act, 2023.
The electricity act according to the statement 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.
The transfer Order by NERC to the akwa ibom state electricity regulatory commission which is expected to come into full effect by February, 17th, 2027 provides Port Harcourt Electricity Distribution Plc (PHEDC) to incorporate a subsidiary (PHEDC SubCo) to assume responsibilities for intrastate supply and distribution of electricity in Akwa Ibom State from PHEDC.
The PHEDC according to the report is to complete the incorporation of PHEDC SubCo within 60 days from 18th August 2026, while the subcompany on the other hand is expected to apply for and obtain licence for the intrastate supply and distribution of electricity from AKSERC, among other directives.
The statement also noted that all transfers envisaged by the latest Order shall be completed by 17th February 2027.
Fifteen states and the federal capital territory, FCT have so far got transfers orders from NERC to regulate their own electricity markets, the breakdown shows that 11 states had crossed the 6-month transitional period while 8 states out of the 11 states are currently operational. Lagos state tops other 5 states that have signed laws to regulate their markets.
