Enugu Electricity Distribution Plc.’s Post

The Electricity Act of 2023, acts as a harbinger of NERC 2024/039. The transfer of ownership for federal Government regulation to State Electricity Agencies: is a commendable action of reverting back to 1979 model. Nigeria is on the verge to establish capital growth, assest growth and reduction of monopoly Market in Nigerian Electricity Supply Industry . This is a welcome development.

On your marks, get set, GO!!! (Part 1) The journey towards state electricity markets has checked a new milestone with the issuance of the Order of Transfer of Regulatory Oversight of the Electricity Market in Enugu State from Nigerian Electricity Regulatory Commission (NERC) to Enugu State Electricity Regulatory Commission (EERC). There is a similar order on the transfer of regulatory responsibility from NERC to Ekiti State Electricity Regulatory Bureau The Order sets out the relevant provisions in the Constitution of the Federal Republic of Nigeria and the Electricity Act and provides a transition plan for the transfer of regulatory responsibility from NERC to EERC. Specifically the Enugu Order directs: A.            Enugu Electricity Distribution Company (EEDC) to incorporate a subsidiary ("SubCO") to assume the responsibilities for intrastate supply and distribution of electricity in Enugu State from EEDC. B.             EEDC must complete the incorporation of SubCO within 60 days from 1st May 2024 and, SubCo shall apply for and obtain a licence for the intrastate supply and distribution of electricity from EERC. c. EEDC shall carve out its network in Enugu State as a standalone network with the installation of boundary meters at all border points where the network crosses from Enugu State into another state. D.           EEDC shall - i. Create an Asset Register of all its power infrastructure located within Enugu State; ii.               Evaluate and apportion contractual obligations and liabilities attributable to EEDC's operations of its subsidiary in Enugu State; iii.            Identify all the applicable trading points for energy offtake for the operations of SubCo in Enugu State. iv.             Confirm the number of employees that are required to provide service to Enugu State as a standalone public utility; and transfer the identified assets for operations in Enugu State, contractual obligations, liabilities and employees to EEDC SUbCO. The responsibilities of NERC under the Order will be shared in the continuation tomorrow. The essence of this Order is to commence the process of handing over responsibility to the state regulator. What are your predictions? Should the states go for it and create their own electricity markets or remain regulated by NERC? Let me know what you think. Happy reading!! #energyaccess #energysecurity #stateelectricitymarkets

the Nigeria Electricity Supply Industry (NESI) is getting interesting. the EA 2024 is a vehicle on autopilot. we can't but wait to see the TRANSFORMATION in NESI and the MO's as the major player.

NERC Transfers Regulatory Oversight Of The Electricity Market In Enugu State To EERC In compliance with the amended Constitution of the Federal Republic of Nigeria (CFRN) and the Electricity Act 2023 (Amended), the Nigerian Electricity Regulatory Commission (NERC or the Commission) has issued an order to transfer regulatory oversight of the electricity market in Enugu State from the Commission to the Enugu State Electricity Regulatory Commission. With the EA, the Commission retains the role as central regulator with regulatory oversight on the 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 NERC to transfer regulatory authority over electricity operations in the state to the State Regulator. Based on this, the Government of Enugu State 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 Enugu State. NERC in the Order, made the following provisions: - Direct Enugu Electricity Distribution Company PLC (EEDC) to incorporate a subsidiary (EEDC SubCo) to assume responsibilities for intrastate supply and distribution of electricity in Enugu State from EEDC. - EEDC shall complete the incorporation of EEDC SubCo within 60 days from 22 April 2024 and the subcompany shall apply for and obtain a licence for the intrastate supply and distribution of electricity from EERC, among other directives. All transfers envisaged by this order shall be completed by 22 October 2024. Kindly visit the NERC website https://nerc.gov.ng/ to access the order for the details.   #NERC #Electricity #NESI #ElectricityAct #Regulation 

NERC transfers regultory oversight of the electricity market in Enugu State to Enugu State Electricity Regulatory Commission pursuant to Section 230 of the Electricity Act 2023. Excited to see how the transition process unfolds over the next few months. #NERC #EEDC #powersector #nigeriapowersector #electricityaccess #stateregulation

Interesting times ahead

Order on the Transfer of Regulatory Oversight from Nigerian Electricity Regulatory Commission (NERC) to Enugu State Electricity Regulatory Commission Part 2 Responsibilities of (Nigerian Electricity Regulatory Commission) NERC under the Order: I. Register of Existing Licensees in Enugu State: NERC will prepare register of existing licensees, permit holders, certificate holders and holders of any other authorizations from the Commission in Enugu State. II. In the register, NERC will specify activities that are purely intra state and those that rely on the use of the national grid for their activities. NERC shall issue a transfer of regulatory oversight notification to companies whose activities are limited within Enugu State informing them of the transfer/assumption of regulatory oversight for their activities by Enugu Electricity Regulatory Commission (EERC). III. Cross Border Transactions: All inter-state/ international transactions involving the national grid shall be subject to the approval of the Commission in accordance with the Nigerian Constitution and the Electricity Act (EA). Responsibilities of EEDC/SubCo: IV. Supply Contracts: Enugu Electricity Distribution Co. (EEDC) shall confirm to NERC the contractual details for the supply of energy and capacity that shall supply the SubCo in Enugu State, and where reliance shall be made on the national grid or other interstate sources of generation; EEDC SubCo shall seek appropriate authorization/approval from NERC. It is expected that all transfers under the Order shall be completed by 22 October 2024 which is six months from the date that the Order was issued. The 6 month countdown has started with responsibilities shared for EEDC, EERC, SubCo and NERC. I am excited. Are you? #energyaccess #energysecurity

Enugu State Assumes Full Regulation Of Electricity Market The Enugu State Electricity Regulatory Commission (EERC), has officially taken over full regulatory oversight of the state’s electricity market, marking a significant milestone in Nigeria’s power sector. This development follows the expiration of the transition period, which saw the transfer of authority from the Nigerian Electricity Regulatory Commission (NERC) to the state-level regulator. Enugu is now the first state in Nigeria to develop a sub-national electricity market, paving the way for others to follow. As part of this move, the EERC issued operational licences to Mainpower Electricity Distribution Limited, a subsidiary of the Enugu Electricity Distribution Company (EEDC), to manage electricity distribution in the state. Additionally, the first Independent Power Project (IPP) in Enugu, Fedikore Limited, received approval to construct a 10MW power plant. This milestone comes after the enactment of the Enugu State Electricity Law, 2023, which granted the state authority over its electricity market. Enugu’s six-month transition period concluded on Tuesday, empowering the EERC to oversee all aspects of electricity generation, transmission, distribution, and retail, including Mini-Grid and Off-Grid solutions. https://lnkd.in/dy4KDAQx

NIGERIAN ELECTRICITY REGULATORY COMMISSION ORDER ON THE OPERATIONALISATION OF “TRANCHE A” OF THE PRESIDENTIAL METERING INITIATIVE UNDER THE FRAMEWORK OF METER ACQUISITION FUND By the Order, the total fund, according to the Nigerian Electricity Regulatory Commission (NERC), is the first tranche of disbursement from the MAF scheme based on contributions made by DisCos as of the April 2024 market settlement. According to the commission, the Order takes effect from 13 June, and may be amended or revoked by subsequent orders issued by the commission. “The funds accrued as at the April 2024 market settlement cycle and available for procurement of meters under the first tranche of the MAF scheme is in the sum of NGN 21.86 billion." NERC noted that the inability of DisCos to raise financing in the form of debt or additional equity was identified as the major constraint in the acquisition and deployment of end-use meters and other capital investments. The commission said the Meter Acquisition Fund (MAF) scheme was therefore developed and approved by the commission, primarily to address the challenge of DisCo credit worthiness inhibiting the deployment of end-use meter in the Nigerian Electricity Supply Industry (NESI) by creating a credible revenue stream from the market funds on the back of which long term financing may be secured by the utilities #NESI #Nigeria #Electricity

In Historic Devt, EERC Assumes Full Regulation of Enugu State Electricity Market