Transfer of Regulatory Oversight of the Electricity Market in Abia State to ASERA

In compliance with the amended Constitution of the Federal Republic of Nigeria (CFRN) and the Electricity Act 2023 (Amended), the Nigerian Electricity Regulatory Commission ("NERC" or the "Commission" has issued an order to transfer regulatory oversight of the electricity market in Abia State from the Commission to the Abia State Electricity Regulatory Authority (ASERA).

Recall that with the EA 2023, the Commission retains the role as a central regulator with regulatory oversight on the inter-state/ international generation, transmission, supply, trading and system operations.

The EA also mandates any state that intends to establish and regulate intrastate electricity markets to deliver a formal notification of its processes and requests NERC to transfer regulatory authority over electricity operations in the state to the State Regulator.

Based on this, the Government of Abia State complied with the conditions precedent in the laws, duly notified NERC and requested for the transfer of regulatory oversight of the intrastate electricity market in Abia State.

The transfer Order by NERC has the following provisions: - Direct Enugu Electricity Distribution Company (EEDC) to incorporate a subsidiary (EEDC SubCo) to assume responsibilities for intrastate supply and distribution of electricity in Abia State from EEDC.

- EEDC shall complete the incorporation of EEDC SubCo within 60 days from 25th June 2025.

The subcompany shall apply for and obtain licence for the intrastate supply and distribution of electricity from ASERA, among other directives.

All transfers envisaged by this order shall be completed by December 24, 2025.