In alignment with the amended Constitution of the Federal Republic of Nigeria (CFRN) and the provisions of the Electricity Act 2023 (Amended), the Nigerian Electricity Regulatory Commission (NERC) has formally transferred the regulatory oversight of the electricity market within Lagos State to the Lagos State Electricity Regulatory Commission (LASERC). This significant shift marks a new era in electricity governance for the state.
The Electricity Act 2023 positions NERC as the central regulatory authority for inter-state and international electricity generation, transmission, supply, trading, and system operations. However, it also empowers individual states to regulate intrastate electricity markets, provided they fulfill specified legal and procedural requirements.
Following compliance with these conditions, the Lagos State Government submitted a formal notification to NERC and requested the transfer of regulatory authority over its intrastate electricity operations. In response, NERC issued a detailed order facilitating the transfer.
1. Reorganization of Eko Electricity Distribution Plc (EKEDP):
EKEDP is mandated to establish a subsidiary, EKEDP SubCo, to oversee intrastate electricity supply and distribution in Lagos State.
The subsidiary must be incorporated within 60 days of December 5, 2024.
EKEDP SubCo is required to apply for and secure the necessary licensing from LASERC to operate in Lagos State.
2. Reorganization of Ikeja Electric Plc (IE):
Similarly, IE is directed to create a subsidiary, IE SubCo, which will take over responsibilities for intrastate electricity supply and distribution.
The incorporation of IE SubCo must also be completed within 60 days of December 5, 2024.
IE SubCo is expected to obtain licensing from LASERC for its operations.
3. Completion Timeline:
All transfers outlined in the order are expected to be finalized by June 4, 2025.
This development is a significant milestone in the implementation of the Electricity Act 2023 and underscores Lagos State’s commitment to optimizing electricity distribution and supply within its jurisdiction. By assuming regulatory authority, LASERC is poised to enhance efficiency, improve service delivery, and promote innovations tailored to the state’s energy needs.
For further details, the full order is available on the official NERC website: www.nerc.gov.ng.
This transition highlights the collaborative efforts between federal and state authorities to redefine Nigeria’s electricity sector with Lagos State leading the way in intrastate market regulation.
