In the realm of energy in Nigeria, significant transformations are unfolding with the recent enactment of the Electricity Act, which reshapes the roles and duties of stakeholders in the sector. The Electricity Regulatory Commission (CRE) is now at the forefront of supervising electricity generation, transmission, distribution, and marketing activities across borders.
This reform, aligned with the revised Constitution of the Federal Republic of Nigeria and the Electricity Act 2023, aims to fortify the regulatory framework of the electricity sector to ensure enhanced efficiency and transparency. According to the Electricity Act, states now have the option to establish and regulate intrastate electricity markets by initiating a formal procedure and requesting the transfer of regulatory authority over electricity operations from the CRE to the state regulatory body.
A recent demonstration of this reform is evident in Enugu State, which diligently followed all requisite procedures, informed the CRE of its intent to assume regulation of intrastate electricity markets within the state, and requested the transfer of this responsibility. In response, the CRE issued an order mandating the Enugu Electricity Distribution Company PLC (EEDC) to establish a subsidiary (EEDC SubCo) tasked with electricity supply and distribution within Enugu State.
The CRE’s directive necessitates the subsidiary’s establishment within 60 days from April 22, with a requirement to obtain a license from the Enugu Electricity Regulatory Commission (EERC) for intrastate electricity supply and distribution, among other directives. This transition aims to elevate the quality of electricity services provided to Enugu State residents by bolstering local oversight and regulation.
This advancement in Nigeria’s electricity sector underscores a commitment to optimizing operations and ensuring better management of energy services at the state level, while upholding national standards and regulations. It signifies a move towards granting more autonomy and responsibility to local authorities in supervising electricity-related activities, thereby fostering a transparent and efficient system tailored to each region’s specific requirements.