Following the Enugu State Electrical energy Regulation signed by Governor Peter Mbah and the latest structure of the Enugu State Electrical energy Regulatory Fee, ESERC, by the Mbah administration, the Nigerian Electrical energy Regulatory Fee (NERC) has previously transferred the regulatory oversight of the Enugu State electrical energy market to the state company efficient Could 1, 2024.

That is the primary time NERC could be ceding such regulatory authority to any state electrical energy regulatory company.

The switch was made identified by NERC on Monday in an April 22, 2024 Order No. NERC/2024/039 signed by the Fee’s Chairman, Sanusi Garba, and the Commissioner for Authorized, Licensing, and Compliance, Dafe Akpeneye.

The switch is sequel to the amendments of the Paragraph 14 (b) of the Second Schedule to the 1999 Structure by the ninth Nationwide Meeting in 2023 in addition to the Electrical energy Electrical energy Act 2023, each of which successfully devolved energy era, transmission, and distribution from the Unique Listing to the Concurrent Listing and in addition empowered the states to handle and regulate their electrical energy markets inside their jurisdictions.

It’s recalled that the Mbah administration initiated the Enugu State Electrical energy Invoice 2023, which the governor signed into Regulation in September the identical 12 months and in addition set the tempo in March 2024 constituted the Enugu State Electrical energy Regulatory Fee (ESERC) led by Chijioke Okonkwo because the Chairman/CEO.

The Electrical energy Act 2023 offers that inside 45 days of receiving formal notification of the enactment of the regulation beneath subsection (1), the Fee (NERC) shall draw and ship to the State Regulator a draft order setting out a plan and timeline for the transition of regulatory obligations from the Fee to the State Regulator, which transition shall be accomplished not later than 6 months from the date on which the formal notification in subsection (1) was delivered to the Fee.

Explaining additional, NERC mentioned the ESERC now holds the unique energy to set and undertake end-user electrical energy tariffs inside Enugu State, tailoring these costs to native circumstances and necessities.

Additionally, whereas ESERC manages native tariff methodologies, any electrical energy sourced from grid-connected crops and the associated tariffs for era and transmission providers should nonetheless obtain approval from the Nigerian Electrical energy Regulatory Fee (NERC), guaranteeing alignment with nationwide vitality insurance policies.

Moreover, the ultimate tariffs authorized by ESERC for customers in Enugu State will probably be definitive for the state, with the Enugu State Authorities answerable for supporting and implementing tariff-related insurance policies, guaranteeing that electrical energy pricing is each truthful and attuned to the precise wants of the state’s residents.

Consequently, NERC ordered that: “Enugu Electrical energy Distribution Firm PLC, EEDC, is hereby directed to include a subsidiary EEDC SubCo beneath the Corporations and Allied Issues Act for the belief of obligations for intrastate provide and distribution of electrical energy in Enugu State from EEDC.

“EEDC shall full the incorporation of EEDC SubCo inside 60 days from the efficient date of this Order and, EEDC SubCo shall apply for and acquire a licence for the intrastate provide and distribution of electrical energy from EERC.

“EEDC shall establish the precise geographic boundaries of Enugu State and carve out its community in Enugu State as a standalone community with the set up of boundary meters in any respect border factors the place the community crosses from Enugu State into one other state.

“EEDC shall create an Asset Register of all its energy infrastructure positioned inside Enugu State.

“Consider and apportion contractual obligations and liabilities attributable to EEDC’s operations of its subsidiary in Enugu State.

“Establish all of the relevant buying and selling factors for vitality to take for the operations of EEDC SubCo in Enugu State

“Verify the variety of staff which can be required to supply service to Enugu State as a standalone public utility; and switch the recognized belongings for operations in Enugu State, contractual obligations, liabilities and staff to EEDC Subco.”