By| Goodluck E.Adubazi, Abuja
The Nigerian Electricity Regulatory Commission (NERC) has transferred regulatory oversight of the intrastate electricity market in Akwa Ibom State to the Akwa Ibom State Electricity Regulatory Commission (AKSERC).
The development is in line with the amended Constitution of the Federal Republic of Nigeria and the Electricity Act 2023 (as amended), which empowers states to establish and regulate electricity markets within their respective territories.
Under the Electricity Act, NERC retains regulatory responsibility for interstate and international electricity activities, including generation, transmission, supply, trading and system operations. States seeking to regulate intrastate electricity markets are required to formally notify NERC and request the transfer of regulatory authority.
In an order issued by the Commission, NERC directed Port Harcourt Electricity Distribution Plc (PHEDC) to incorporate a subsidiary, to be known as PHEDC SubCo, which will assume responsibility for electricity supply and distribution within Akwa Ibom State.
PHEDC is required to complete the incorporation of the subsidiary within 60 days from August 18, 2026.
The newly incorporated PHEDC SubCo will also be required to apply for and obtain an intrastate electricity supply and distribution licence from AKSERC.
NERC said the transfer is aimed at giving effect to the new regulatory framework for state-level electricity markets under the amended Electricity Act.
The Commission further directed that all transfers and related processes envisaged under the order must be completed by February 17, 2027.
The move marks a significant step in the implementation of Nigeria’s decentralised electricity market framework, allowing Akwa Ibom State to exercise greater regulatory control over electricity activities within its territory while NERC continues to oversee the national and interstate electricity market.
