NERC Transfers Abia’s Electricity Market Regulatory Oversight To ASERA

By Yahaya Umar 

Regulatory oversight of the electricity market in Abia State has been transferred to the Abia State Electricity Regulatory Authority ,ASERA, by the Nigerian Electricity Regulatory Commission ,NERC, in compliance with the amended Constitution of the Federal Republic of Nigeria ,CFRN, and the Electricity Act 2023 (Amended).

With the EA 2023, the commission retains the role as a central regulator with regulatory oversight on the interstate/international generation, transmission, supply, trading, and system operations.

The EA 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.

Based on the above, NERC, in a statement on Tuesday, said the Abia State Government has complied with the conditions precedent in the laws, duly notified the agency, and requested the transfer of regulatory oversight of the intrastate electricity market in Abia State.

Part of the provisions of the transfer order by NERC includes directing Enugu Electricity Distribution Company ,EEDC, to incorporate a subsidiary ,EEDC SubCo, to assume responsibilities for intrastate supply and distribution of electricity in Abia State from EEDC and EEDC will also complete the incorporation of EEDC SubCo within 60 days from June 25, 2025.

The sub-company will apply for and obtain a licence for the intrastate supply and distribution of electricity from ASERA, among other directives.

All transfers envisaged by this order will be completed by December 24, 2025.

With this latest development, Abia State joins a rank of states that has seen this implemented including Lagos and Ogun States. This means that it will be able to enhance service reliability through locally managed oversight and address local consumer needs and infrastructure challenges as well as attract private investments while promoting independent power projects tailored to the state.