NERC hands over Lagos power market regulation in line with Electricity Act
Newly established Lagos State Electricity Regulatory Commission (LASERC) has formally taken over power market regulation in the state from the Nigerian Electricity Regulatory Commission (NERC).
The NERC in a post on its official X (Twitter) handle said the transfer is in compliance with the Constitution and the Electricity Act (EA) 2023.
The NERC issued an order to transfer regulatory oversight of the electricity market in Lagos from the Commission to the Lagos State Electricity Regulatory Commission (LASERC).
With the EA 2023, the Commission retains the role as a central regulator with oversight on inter-state/international generation, transmission, supply, trading and system operations.
The EA also mandates any state that intends to establish and regulate intrastate electricity markets to deliver a formal notification of its processes and requests to the NERC to transfer regulatory authority over electricity operations to the State Regulator.
The NERC said that based on this, the government of Lagos State has complied with the conditions precedent in the laws, duly notified the NERC and requested for the transfer of regulatory oversight of the intrastate electricity market in Lagos.
The transfer Order by the NERC has the following provisions:
- Direct Eko Electricity Distribution Plc (EKEDP) to incorporate a subsidiary (EKEDP SubCo) to assume responsibilities for intrastate supply and distribution of electricity in Lagos State from EKEDP.
- EKEDP shall complete the incorporation of EKEDP SubCo within 60 days from 5th December 2024. The subcompany shall apply for and obtain licence for the intrastate supply and distribution of electricity from LASERC, among other directives.
- Direct Ikeja Electric Plc (IE) to incorporate a subsidiary (IE SubCo) to assume responsibilities for intrastate supply and distribution of electricity in Lagos State from IE.
- IE shall complete the incorporation of IE SubCo within 60 days from 5th December 2024. The sub-company shall apply for and obtain licence for the intrastate supply and distribution of electricity from LASERC, among other directives.
- All transfers envisaged by this order shall be completed by 4 June 2025.
The Lagos State Electricity Law 2024 was enacted and signed by Governor Babajide Sanwo-Olu on December 3.
The NERC’s order aims to enhance local governance over energy supply and encourage private sector investment in Lagos, Nigeria’s commercial capital.
Sanwo-Olu had emphasised that this regulatory autonomy is crucial for improving power supply reliability and attracting investment.
The establishment of LASERC is expected to create a more responsive regulatory environment tailored to Lagos’s unique energy needs. The state’s electricity market is anticipated to serve as a model for other regions in Nigeria, promoting sustainable energy practices and innovation.
The NERC’s decision reflects a broader trend across Nigeria where several states have initiated similar regulatory frameworks since the passage of the Electricity Act.
Enugu, Ekiti, and Oyo have also created their regulatory bodies in the shift towards decentralised energy management.
With this transfer, LASERC oversees electricity distribution companies in Lagos, ensuring compliance with regulations and facilitating the development of independent power projects to reduce reliance on the national grid and improve service delivery to residents.
– Leadership.
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