National Telescope national telescope newspaper
By Chukwuma Okoro
The Federal Government has handed over the regulatory oversight of the Enugu electricity market to the Enugu State government. This is coming on the heels of the Enugu Electricity Law, recently enacted by Governor Peter Mbah.
The transfer was made known by NERC on Monday in an April 22, 2024 Order No. NERC/2024/039 signed by the Commission’s Chairman, Sanusi Garba, and the Commissioner for Legal, Licensing, and Compliance, Dafe Akpeneye. With the constitution of the Enugu State Electricity Regulatory Commission (ESERC) and the subsequent transfer of regulatory oversight from the Nigerian Electricity Regulatory Commission (NERC), significant changes are underway in the state’s power sector. This handover has ushered in a new era for electricity regulation in Nigeria.
Governor Mbah’s administration spearheaded the Enugu State Electricity Bill 2023, which became law in September of the same year. This legislative move was followed by the establishment of ESERC, led by Chijioke Okonkwo as Chairman/CEO, marking a pivotal step towards state-level management and regulation of the electricity market.
The transfer of regulatory authority, effective May 1, 2024, represents a historic shift as NERC relinquishes its oversight responsibilities to ESERC, in compliance with constitutional amendments and the Electricity Act 2023. These legal frameworks empower states to manage and regulate their electricity markets autonomously, a departure from the centralized approach previously in place.
Under this new arrangement, ESERC gains exclusive authority to set and adopt end-user electricity tariffs within Enugu State, tailored to local conditions and needs. While ESERC manages local tariff methodologies, approval for electricity sourced from grid-connected plants and related tariffs for generation and transmission services remains subject to NERC’s oversight to ensure alignment with national energy policies.
As part of the transition, NERC directed the Enugu Electricity Distribution Company PLC (EEDC) to establish a subsidiary, EEDC SubCo, tasked with intrastate supply and distribution of electricity within Enugu State. This directive includes incorporating EEDC SubCo under relevant legal statutes, delineating Enugu State’s geographic boundaries for electrical networks, creating an asset register, and transferring operational assets, contractual obligations, liabilities, and employees to EEDC SubCo.
These developments mark a significant shift towards decentralized electricity regulation, empowering states like Enugu to manage their energy sectors more effectively, respond to local needs, and ensure fair and sustainable electricity pricing for residents.
