NERC Grants Nasarawa Approval To Regulate Electricity

The Nigerian Electricity Regulatory Commission (NERC) has granted approval for Nasarawa State to assume regulatory control over its electricity market.

The transfer of regulatory oversight was confirmed through a new order issued by NERC, in compliance with the amended Constitution of the Federal Republic of Nigeria and the Electricity Act 2023 (Amended).

This approval enables the Nasarawa State Electricity Regulatory Commission (NASERC) to take full charge of intrastate electricity regulation in the state.

With the enactment of the Electricity Act 2023, state governments were empowered to regulate electricity generation, transmission, and distribution within their boundaries.

According to NERC Order, Abuja Electricity Distribution Plc (AEDC) is required to incorporate a subsidiary company, AEDC SubCo that will be solely responsible for intrastate electricity distribution and supply within Nasarawa State.

The commission stated that
the AEDC SubCo is to be incorporated within 60 days from August 4, 2025, and must subsequently obtain the necessary licence from NASERC to operate.

It added that the full transition of electricity oversight and market activities from NERC to NASERC should be concluded no later than February 3, 2026.

With the development, Nasarawa State is now the 12th state to get approval from NERC to regulate electricity in the country.

States like Kogi, Niger, Ekiti, Plateau, Oyo, Ogun, Enugu, Lagos, Imo, Ondo, and Edo, had earlier received approvals to establish and operate independent electricity markets, license market participants, and enforce compliance within their territories.

THE WHISTLER reports that the new development in the country’s power sector followed the implementation of the Electricity Act (EA)
2023, which repealed the Electric Power Sector Reform Act (EPSRA) of 2005 and redefined the legal and institutional framework governing the Nigerian electricity supply industry.

Signed into law in June 2023 by President Bola Tinubu, the Electricity Act 2023 devolves power sector responsibilities previously concentrated at the federal level.

It empowers subnational governments to legislate, generate, transmit, and distribute electricity, particularly to areas not served by the national grid.

Source: TheWhistler | Continue to Full Story…