The Nigerian Electricity Regulatory Commission (NERC) on Thursday, said it has formally transferred regulatory oversight of the state’s electricity market to the Lagos State Electricity Regulatory Commission (LASERC).
This comes barely two weeks after the Lagos State Governor, Babajide Sanwo-Olu signed the Lagos Electricity Bill 2024 into law.
A statement by NERC indicated that Lagos Electricity Bill is therefore granted the state autonomy to generate, transmit, and distribute electricity, marking a significant step under the provisions of the amended Electricity Act 2023.
According to the NERC, based on the provision of the Electricity Act, the Government of Lagos State has complied with the conditions precedent in the laws, duly notified NERC and requested for the transfer of regulatory oversight of the intrastate electricity market in thee state to her.
The move aligns with the electricity reforms which allow states to establish and regulate their own intrastate electricity markets.
Lagos State, having fulfilled the legal requirements, formally requested the transfer of regulatory authority from NERC to LASERC.
In response, NERC issued an order mandating the incorporation of new subsidiaries by Eko Electricity Distribution Company (EKEDC) and Ikeja Electric (IE) to manage intrastate electricity supply and distribution exclusively within Lagos State.
These subsidiaries, according to NERC, must secure operational licences from LASERC within 60 days, with the full transition set for completion by June 2025.
This step, stakeholders insist, emphasised Lagos State’s determination to take charge of its electricity market, improve supply reliability, and attract investment into its energy sector.
Lagos State has therefore become the 8th state approved by NERC to establish and regulate a state-owned electricity market, joining the ranks of Enugu, Ondo, Edo, Imo, Ekiti, Oyo, and Kogi.
The states have therefore advanced the approval from the NERC to establish and operate state-owned electricity markets.