Precious Obogo
The Nigerian Electricity Regulatory Commission (NERC) has formally transferred regulatory oversight of the intrastate electricity market in Akwa Ibom State to the Akwa Ibom State Electricity Regulatory Commission (AKSERC).
The action is in line with the amended Constitution and the Electricity Act 2023.
This marks a further shift towards state-level regulation of electricity markets following the constitutional and legislative changes that allow states to establish and regulate electricity operations within their territories.
Under the Electricity Act 2023, NERC retains regulatory oversight of interstate and international electricity activities, including generation, transmission, supply, trading and system operations. States, however, may establish regulatory frameworks for electricity markets operating exclusively within their territories.
The Commission said the transfer to AKSERC followed the state’s formal notification and request for the devolution of regulatory authority over intrastate electricity operations in Akwa Ibom.
As part of the order, NERC directed Port Harcourt Electricity Distribution Plc (PHEDC) to incorporate a subsidiary, to be known as PHEDC SubCo, which will take over 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. Following its incorporation, PHEDC SubCo is expected to apply to AKSERC for the appropriate licence to undertake intrastate electricity supply and distribution in the state.
The Commission stipulated that all transfers envisaged under the order must be completed by February 17, 2027.
The development effectively places the regulation of electricity distribution and supply activities confined to Akwa Ibom under the state regulator, while NERC continues to exercise its federally retained regulatory responsibilities.
The transfer is part of the broader restructuring of Nigeria’s electricity regulatory framework following amendments to the Constitution and the Electricity Act, which have opened the door for states to participate more directly in regulating electricity markets within their jurisdictions.
The new framework also creates a distinction between electricity activities that cross state or national boundaries and those undertaken solely within individual states.
While NERC remains responsible for interstate and international electricity generation, transmission, supply, trading and system operations, state regulators are empowered to oversee intrastate markets where the relevant state has established the necessary regulatory institutions and formally sought the transfer of authority.
With the latest order, Akwa Ibom joins the growing number of states seeking greater control over the regulation of electricity markets within their territories.
NERC’s order also provides for the institutional separation of PHEDC’s activities in Akwa Ibom through the creation of PHEDC SubCo, which will operate under the regulatory framework established by AKSERC.
The arrangement is expected to provide the legal and regulatory structure for electricity distribution and supply activities in Akwa Ibom as the state assumes responsibility for regulating its intrastate market.