The Nigerian Electricity Regulatory Commission (NERC) has transferred regulatory oversight of the electricity market in Ondo state to the state’s electricity regulatory bureau.
This was disclosed by the NERC in a public notice where it stated that its actions were in line with the provisions of the Electricity Act of 2023.
The commission stated that the Ondo state government having fulfilled the requirements of the law as spelt out in the Electricity Act 2023 notified it of its intent to regulate the electricity market in the state which was approved.
By this order, the newly created Ondo State Electricity Regulatory Bureau (OSERB) will now regulate the Benin Electricity Distribution Company (BEDC) which oversees electricity distribution in the state.
However, the transfer order by the NERC listed two main provisions which include; the BEDC to incorporate a new subsidiary to carry out electricity distribution in the state and the new sub distribution company would have to apply for distribution license from the Ondo State Electricity Regulatory Bureau (OSERB) in the next 60days.
The electricity act signed into law by President Tinubu last year deregulated electricity distribution across the country empowering state governments to set up their own regulator to oversee power generation and distribution within their state.
The NERC yesterday approved similar orders for Enugu and Ekiti states making them the pioneers state owned electricity regulators in the country.