From **Ighomuaye Lucky, **Benin
Edo State has assumed regulatory control of its intrastate electricity market following the transfer of oversight from the Nigerian Electricity Regulatory Commission (NERC) to the Edo State Electricity Regulatory Commission (ESERC).
Commissioner for Power, Paul Usenbo, who disclosed this in Benin, said the completion of the regulatory transition would enable the state to exercise greater control over electricity regulation and develop a power market tailored to the needs of residents, businesses and industries.
He described the development as a major milestone in the state government’s efforts to reposition the power sector and attract investment capable of improving electricity supply and supporting economic growth.
According to Usenbo, the transition was undertaken pursuant to the amended Electricity Act, which provides for states that meet prescribed requirements to regulate electricity activities within their territories.
“Edo State has completed the regulatory transition contemplated under the amended Electricity Act, with regulatory oversight of its intrastate electricity market transferred from NERC to ESERC effective 21 August 2024,” he said.
The commissioner said the establishment of ESERC had provided the institutional framework for the state to play a more decisive role in determining the direction of its electricity market.
He, however, clarified that the transfer of regulatory powers did not mean that the restructuring of electricity distribution operations in the state had been completed.
“The regulatory transition should not be conflated with completion of the full capitalisation, asset/liability delineation and corporate restructuring of the distribution business,” Usenbo said.
According to him, the next phase would involve documentary confirmation of the incorporation and capitalisation of the designated successor electricity distribution entity.
It would also require the formal delineation and transfer of relevant assets, liabilities, contracts and personnel connected with electricity distribution operations in Edo.
Usenbo said completing the process was necessary to eliminate uncertainty and clearly define the responsibilities of the various players in the emerging state electricity market.
He added that the legal and institutional transition must be followed by coordinated implementation among ESERC, the Ministry of Power and the Benin Electricity Distribution Company (BEDC) to ensure that consumers ultimately benefit from the reforms.
“The Ministry of Power would be given the necessary directives, ESERC and BEDC accordingly,” he said.
Usenbo commended Governor Monday Okpebholo for backing the establishment and operationalisation of ESERC, saying the administration was laying the foundation for a more responsive electricity market.
He expressed optimism that greater state control of the sector would open opportunities for investment, improve electricity services and support Edo’s wider economic development programme.
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