The Nigerian Electricity Regulatory Commission (NERC) has delegated the regulatory oversight of Ekiti State’s electricity sector to the Ekiti State Electricity Regulatory Bureau (EERB), effective May 1, 2024.
This transition is part of a larger decentralization initiative within Nigeria’s energy sector, prompted by the Electricity Act 2023 amendments.
A NERC order dated April 22, 2024, formalized this handover, which is rooted in constitutional changes enacted on March 17, 2023.
These changes grant states the authority to independently oversee their electricity generation, transmission, and distribution.
The Ibadan Electricity Distribution PLC (IBEDC) is instructed to form a subsidiary, IBEDC SubCo, dedicated to managing Ekiti State’s electricity needs.
This subsidiary will be responsible for the local electricity supply and distribution, distinct from the national grid operations.
IBEDC is given a 60-day period from the order’s effective date to establish IBEDC SubCo and define Ekiti’s electricity network boundaries, including the installation of boundary meters at transition points to adjacent areas.
IBEDC SubCo must also secure a license from EERB for its state-level operations. EERB is now vested with the exclusive power to set end-user electricity tariffs in Ekiti State, based on local economic factors and operational expenses.
This shift in regulatory responsibility aims to enhance the efficiency, accountability, and responsiveness of electricity service management in Ekiti State. It allows EERB to customize its regulatory and tariff-setting practices to align with the unique needs of Ekiti’s electricity consumers.
Moreover, the Ekiti State Government, in collaboration with EERB, will now support tariff policies for end-users, ensuring that electricity pricing is equitable and supportive of the state’s economic growth.
This move marks a significant step in the decentralization of Nigeria’s electricity regulatory framework.
