Oyo gets NERC nod on electricity commission

The Nigerian Electricity Regulatory Commission has transferred the regulatory oversight of the electricity market in Oyo to the Oyo State Electricity Regulatory Commission in compliance with the Electricity Act 2023.

This was contained in Order No: NERC/2024/110 issued by the commission on Tuesday, making Oyo the fifth state to receive such authority to regulate power outside the regulatory function of NERC.

Enugu, Ekiti, Ondo, and Imo states have earlier been permitted to regulate their electricity markets as far as power generation, transmission, and distribution are concerned.

The new order on regulatory oversight to Oyo State, signed by the NERC Chairman, Sanusi Garba, shall take effect from August 6, 2024.

According to NERC, the Government of Oyo State has initiated the implementation of the provisions of the recent amendment to the Constitution and the Electricity Act; and complied with the conditions precedent in the aforementioned laws.

It said the state is desirous of assuming regulatory oversight of the intrastate electricity market in Oyo.

The state government was said to have duly notified the commission and requested for the transfer of regulatory oversight of the intrastate electricity market in Oyo State in compliance with the provisions of the Electricity Act.

“Section 230(3) of the Act mandates the commission to develop a transition plan and timeline for the transfer of regulatory oversight of the intrastate from the state electricity market from NERC to OSERC upon receipt of a formal notification,” NERC said.

The order by NERC seeks to commence the process of the transfer of regulatory oversight for the intrastate electricity market in Oyo State from the commission to OSERC based on the Constitution and the Act.

It is to provide a transition plan for the transfer of regulatory oversight for the intrastate electricity market in Oyo State from the commission to OSERC, and address ensuing transitional matters arising from the transfer of regulatory oversight for the intrastate electricity market in Oyo State from the commission to OSERC.

Therefore, the NERC directed the Ibadan Electricity Distribution Plc to incorporate a subsidiary known as IBEDC SubCo under the Companies and Allied Matters Act for the assumption of responsibilities for intrastate supply and distribution of electricity in Oyo State from IBEDC.

IBEDC is to complete the incorporation of the IBEDC SubCo within 60 days from the effective date of the order, while IBEDC SubCo will apply for and obtain a licence for the intrastate supply and distribution of electricity from OSERC, the NERC stated.

The read partly, “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.

“IBEDC shall create an asset register of all its power infrastructure located within Oyo State; evaluate and apportion contractual obligations and liabilities attributable to IBEDC’s operations of its subsidiary in Oyo State,” among other functions.