The Nigerian Electricity Regulatory Commission (NERC), officially transferred regulatory oversight of Lagos State’s electricity market to the newly established Lagos State Electricity Regulatory Commission (LASERC).
This transition, announced by NERC in a statement on X (formerly Twitter) on Thursday, aligns with the amended provisions of the Nigerian Constitution and the Electricity Act of 2023.
NERC clarified that while it has ceded oversight of the intrastate electricity market in Lagos, it will continue to serve as the central regulator, maintaining jurisdiction over inter-state and international electricity generation, transmission, supply, trading, and system operations.
The statement explained, “In compliance with the amended Constitution of the Federal Republic of Nigeria (CFRN) and the Electricity Act 2023 (Amended), NERC has issued an order to transfer regulatory oversight of the electricity market in Lagos State to LASERC.”
It further noted that under the Electricity Act 2023, any state that wishes to regulate its intrastate electricity market must notify NERC, which will then facilitate the transfer of authority.
In Lagos State’s case, the government met all legal requirements, notifying NERC and requesting the transfer.
The order issued by NERC includes key provisions, such as directing Eko Electricity Distribution Plc (EKEDP) and Ikeja Electric Plc (IE) to establish subsidiaries (EKEDP SubCo and IE SubCo), to handle the intrastate supply and distribution of electricity.
Both companies are required to complete the incorporation of their subsidiaries by December 5, 2024, and apply for the necessary licences from LASERC.
All transfers outlined in the order are to be completed by June 4, 2025.
This move follows the recent signing of the Lagos Electricity Bill into law by Governor Babajide Sanwo-Olu.
The governor commended the state House of Assembly for its swift passage of the bill, which he believes will significantly improve the socio-economic conditions of Lagos residents.
He emphasized that the bill, years in the making, will help ensure a stable and reliable power supply for the state.
