The Nigerian Electricity Regulatory Commission has handed over control of monitoring the Enugu electricity market to the Enugu Electricity Regulatory Commission.
PERISCOPE NIGERIA reports that is expected to run by the state government starting May 1, 2024.
This marks the very first time that regulatory powers have been shifted from the NERC to a state government electricity regulator.
State regulation of Electricity
The transfer is a direct result of recent legislative changes that have decentralized the power sector.
These changes were set into motion in March 2023 when former President Muhammadu Buhari signed amendments to Nigeria’s constitution that removed power generation, transmission, and distribution from the exclusive legislative list, effectively ending the federal government’s sole jurisdiction over these areas.
According to NERC, the Enugu Electricity Regulatory Commission (EERC) now holds the exclusive authority to set and adopt end-user electricity tariffs within Enugu State, tailoring these charges to local conditions and requirements.
While EERC manages local tariff methodologies, any electricity sourced from grid-connected plants and the related tariffs for generation and transmission services must still receive approval from the Nigerian Electricity Regulatory Commission (NERC), ensuring alignment with national energy policies.
Ultimately, the final tariffs approved by EERC for consumers in Enugu will be definitive for the state, with the Enugu State Government responsible for supporting and implementing tariff-related policies, ensuring that electricity pricing is both fair and attuned to the specific needs of the state’s residents.
The memo from NERC states, “This regulatory instrument may be cited as the Order of Transfer of Regulatory Oversight of the Electricity Market in Enugu State from NERC to the Enugu State Electricity Regulatory Commission (EERC). This Order shall take effect from May 1, 2024.”
