By Obas Esiedesa, Abuja

The Nigerian Electricity Regulatory Commission, NERC, has granted Oyo State the right to set up and regulate electricity supply and distribution within the State.

To this effect, the Commission ordered Ibadan Electricity Distribution Company, IBEDC, to within 60 days establish a subsidiary to take over its franchise in Oyo State.

NERC in an Order released yesterday titled: Transfer of Regulatory Oversight of the Electricity Market in Oyo State from Nigerian Electricity Regulatory Commission, said its decision followed an application by the Oyo State government.

The Electricity Act 2023 empowers states to set up their own electricity market and regulations for the supply and distribution of electricity within the boundaries of the states.

NERC in the order signed by chairman, Engr. Sanusi Garba and Commissioner, Legal, Licencing and Compliance, Dafe Akpeneye disclosed that the Oyo State Electricity Regulatory Commission will be responsible for setting tariffs for electricity consumers in the state.

NERC stated: “IBEDC shall identify the actual geographic boundaries of Oyo State and carve out its network in Oyo State as a standalone network with the installation of boundary meters at all border points where the network crosses from Oyo State into another state.

“IBEDC shall create an Asset Register of all its power infrastructure located within Oyo State; Evaluate and apportion contractual obligations and liabilities attributable to IBEDC’s operations of its subsidiary in Oyo State;

“Identify all the applicable trading points for ene~rg offtake for the operations of IBEDC SubCo in Oyo State. Confirm the number of employees that are required to provide service to Oyo State as a standalone public utility; and Transfer the identified assets for operations in Oyo State, contractual obligations, liabilities and employees to IBEDC SubCo.

“The Commission shall prepare a register of licensees, permit holders, certificate holders and holders of any other authorisations from the Commission in Oyo State. The register shall be delineated along the lines of authorised activities and use of the national grid for their activities.

“A transfer of regulatory oversight notification shall be issued by the Commission to the companies in the register whose activities are limited within Oyo State informing the entities of the transfer/assumption of regulatory oversight for their activities by OSERC.

“All cross-border transactions involving the national grid shall be subject to the approval of the Commission in accordance with the CERN and EA. IBEDC shall confirm to the Commission the contractual details for the supply of energy and capacity that shall supply IBEDC SubCo in Oyo State, and where reliance shall be made on the national grid or other interstate sources of generation; IBEDC SubCo shall seek appropriate authorisation/approval from the Commission in accordance with the CERN and EA.

“OSERC shall have the exclusive responsibility of determining and adopting an end-user tariff methodology applicable within its area of regulatory oversight. Where IBEDC SubCo receives electricity from grid connected plants, the contracts and tariffs applicable for generation and transmission services shall be approved by the Commission.

“The final end-user tariffs approved by OSERC shall be the exclusive tariffs that apply in Oyo State and all tariff policy support for end-use customers in Oyo State shall be the responsibility of the Oyo State Government.

All transfers envisaged by this order shall be completed by 5 February 2025”, the Commission added.