By Oke Peter
Akwa Ibom State is set to assume regulatory oversight of its intrastate electricity market following a formal request to the Nigerian Electricity Regulatory Commission (NERC) for the transfer of regulatory authority 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, which provide a framework for states to establish and regulate electricity markets within their territories.
NERC has already transferred electricity-market regulatory oversight to 16 states as part of Nigeria's ongoing transition from a solely federal regulatory framework to a multi-tier electricity market.
Under the Electricity Act 2023, NERC retains regulatory responsibility for electricity activities involving interstate and international generation, transmission, supply, trading and system operations, while states are empowered to establish regulatory frameworks for intrastate electricity markets.
A state seeking to regulate its intrastate electricity market is required to formally notify NERC of its intention and request the transfer of regulatory authority over electricity operations within the state to its state electricity regulator.
Following Akwa Ibom's request, NERC's Transfer Order contains provisions for the restructuring of electricity distribution operations in the state.
Under the order, Port Harcourt Electricity Distribution Plc (PHEDC) is directed to incorporate a subsidiary, to be known as PHEDC SubCo, which will assume responsibility for intrastate electricity supply and distribution in 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 will be required to apply for and obtain the appropriate licence for intrastate electricity supply and distribution from AKSERC.
NERC also directed that all transfers envisaged under the order must be completed by February 17, 2027.
The development forms part of the broader decentralisation of Nigeria's electricity market under the Electricity Act 2023.
NERC has described the transition as the emergence of a multi-tier electricity regulatory framework, with state regulators assuming responsibility for intrastate electricity markets while the federal regulator continues to oversee areas within its constitutional and statutory jurisdiction.
The transition also means that electricity consumers in states that have fully assumed regulatory control are expected to channel complaints concerning intrastate electricity services through their respective state electricity regulators after first approaching the relevant distribution company.
