Akwa Ibom NERC Transfers Power Sector Oversight to AKSERC

• NERC transfers regulatory oversight of Akwa Ibom State's electricity market to AKSERC.
• 16 states have received transfer orders under the Electricity Act 2023.
• PHEDC will establish a subsidiary, PHEDC SubCo, for intrastate electricity supply and distribution in Akwa Ibom State.
• All transfers are expected to be completed by February 17, 2027.

The decentralisation of Nigeria's power sector is gaining momentum with the transfer of regulatory oversight from NERC to state-level regulators like AKSERC.

The Nigerian Electricity Regulatory Commission (NERC) has taken another significant step in decentralising the country's power sector by transferring regulatory oversight of Akwa Ibom State's electricity market to the Akwa Ibom State Electricity Regulatory Commission (AKSERC). This move is part of a broader effort to devolve power from the federal government to state-level regulators, with 16 states now having received transfer orders. The Electricity Act 2023 has mandated this decentralisation process, which aims to improve efficiency and responsiveness in electricity regulation at the local level.

The Port Harcourt Electricity Distribution Company (PHEDC) will establish a subsidiary, PHEDC SubCo, to take over intrastate electricity supply and distribution within Akwa Ibom State. This new entity will operate under the licence issued by AKSERC, marking a significant shift in the structure of electricity supply in the state. Meanwhile, NERC will continue to regulate interstate and international electricity operations, retaining its role as central regulator for cross-border activities.

The transfer order is expected to be completed by February 17, 2027, with all transfers anticipated to be finalised within this timeframe. This transition will have significant implications for the power sector in Akwa Ibom State, as AKSERC becomes the primary regulator of electricity activities within the state. Lawyers and compliance officers should closely monitor the transition timeline, as it will impact the regulatory landscape and operational requirements for companies operating in the state.

Lawyers and compliance officers should watch for the transition timeline, with all transfers expected to be completed by February 17, 2027. They should also note that AKSERC will become the primary regulator of electricity activities within Akwa Ibom, while NERC continues to regulate interstate and international electricity operations.

Source: Original reporting via Nigerian Electricity Regulatory Commission