The Nigerian Electricity Commission (“NERC”) in compliance with the Constitution of the Federal Republic of Nigeria (As Amended) and the amended Electricity Act 2023 (“EA”) issued an order which took effect from the 5th of December 2024 with Order No: NERC/2024/112 transferring regulatory oversight of the electricity market in Lagos State from NERC to the Lagos State Electricity Regulatory Commission (“LASERC”).
LASERC having complied with the conditions precedent as set out in the EA notified NERC and requested for the transfer of regulatory oversight of the interstate electricity market in Lagos State. Consequently, both Eko Electricity Distribution Plc (“EKEDP”) and Ikeja Electric Plc (“IE”) via the said NERC order have been directed to incorporate subsidiaries EKEDP SubCo and IE SubCo respectively to assume responsibility for intrastate supply and distribution of electricity in Lagos State from both EKEDP and IE.
The incorporation of both EKEDP SubCo and IE SubCo must be completed no later than 60 days from the 5th of December 2023 and both EKEDP SubCo and IE SubCo shall apply for and obtain license for intrastate supply and distribution of electricity from LASERC. Despite the transfer of regulatory oversight of the electricity market in Lagos State to LASERC, it is pertinent to note that following the provisions of the EA NERC remains the central regulator with regulatory oversight on the inter-state/international generation, transmission, supply trading and systems operations.