Tag: NERC

The Nigerian Electricity Regulatory Commission (NERC) on Wednesday transferred regulatory oversight of the electricity market in Kogi to Kogi State Electricity Regulatory Commission (KSERC).

The action was in compliance with the amended Constitution of the Federal Republic of Nigeria (CFRN) and the Electricity Act 2023 (Amended).

NERC said: “Transfer of Regulatory Oversight of the Electricity Market in Kogi State to KSERC

“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 Kogi State from the Commission to the Kogi State Electricity Regulatory Commission (KSERC).”

Read Also: NERC approves N26.4b subsidy for AEDC customers, leaves tariff unchanged

It recalled that with the EA 2023, the Commission retains the role as a central regulator with regulatory oversight on the inter-state/international generation, transmission, supply, trading and system operations.

The commission said 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.

The commission said based on this, the Government of Kogi 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 Kogi State.

The order that announced the transfer said: “The transfer Order by NERC has the following provisions: “- Direct Abuja Electricity Distribution Company (AEDC) to incorporate a subsidiary (AEDC SubCo) to assume responsibilities for intrastate supply and distribution of electricity in Kogi State from AEDC. “- AEDC shall complete the incorporation of AEDC SubCo within 60 days from 13th September 2024.

The subcompany shall apply for and obtain licence for the intrastate supply and distribution of electricity from KSERC, among other directives. “All transfers envisaged by this order shall be completed by 12th March 2025.”.

The Nigerian Electricity Regulatory Commission (NERC) has directed the Nigerian Bulk Electricity Trading (NBET) to make another submission for its license renewal.

In his closing remarks at the Public Hearing for the license renewal in Abuja, NERC Commissioner Legal and Licensing Compliance, Barrister Dafe Akpeneye, expressed dissatisfaction with the presentation the NBET Acting Managing Director, Mr. Johnson Akinawo made for renewal.

According to the commissioner, the NBET boss failed to justify the issues that qualify the organisation for the renewal of its license, which expires on November 21, 2024.

Akpeneye insisted that NBET will not have the opportunity for another public hearing, although the NERC will give it the window to make a written submission justifying the request for a license renewal.

He said: “But in making those presentation to us we expect you have talk more about the issues. 

“There are issues you need to give to raise level of confidence. Even somebody will walk out of this room and will make investment based on what you said because you are setting a trajectory of what is happening in the horizon. 

“NBET has the opportunity to make a … We are not going to have a hearing for NBET. NEBT know why. When does your license expire. November 21st. 

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“So, we can’t start doing this anymore. So you have the opportunity to make a proper written submission in support of your application. 

 “The commission hasn’t made up its mind on which way to go. “But on the basis of the strength of what you have presented before us, the decision will be taken.”

In his presentation, Akinawo urged the commission to renew NBET license by 10 years.

He said the Nigerian Electricity Supply Industry (NESI) is not ripe for bilateral trade.

He said NBET can still function as the supplier of last resort in the electricity market.

According to him, there are still some Power Purchase Agreements that NBET needs to conclude. 

He doubted the ability of the States that NERC have given approval to establish their own electricity commissions to cope with tariff matters.

Responding, the Azura – Edo Power Plant, Managing Director, Mr. Edun Okeke urged the commission to renew the NBET license.
He said there is not need to limit the license to 10 years as Akinawo requested.

According to him, an indefinite license will boost investors and banks’ confidence that the one limited to 10 years.

Making case for the license renewal, the former Market Operator, Mr. Edmund Eje said NBET still has a substantial role to play in the industry.

The Niger Delta Power Holding Company (NDPHC) has sought a directive for debt recovery from the Nigerian Electricity Regulatory Commission (NERC).

The NDPHC’s managing director, Jennifer Adighije, disclosed this as she led the company’s new management on a first official working visit to the Nigerian Electricity Regulatory Commission (NERC) in Abuja.

She said owing to the burden of debt the company is bearing, its board chairman, Vice President Kashim Shettima has charged it to recover the money.

The Vice President, she said, also charged the company to present a report on the recovery in two weeks.

Her words: “Our rising debt exposure, amongst other issues, were very key subjects of discussion, which is now threatening the survival of the company.

“This compelled the chairman to give us a directive to pursue debt recovery, amongst other issues, very aggressively, and report back on the progress made within two weeks.”

Adighije lamented that the firm which has the largest generation capacity is grappling with debt.

She acknowledged that the success of NDPHC in its exercise is subject to its cooperation and partnership with NERC.

The Managing Director also said there are several activities and valuations that are ongoing in the firm.

Soliciting the support of NERC, she urged the chairman, Engr. Sanusi Garba to expedite action in his internal process to deliver positive results while reporting to Shettima.

Adighije pleaded with Garba to set up a technical working committee to commence action on the issues.

The NDPHC boss said, “Therefore we appeal to you to use your kind of this to expedite your internal processes to ensure that we deliver positive results back to the chairman of the board.

 “I would humbly request that you can, after this meeting, you can set up a technical working committee to begin to start to look at the issues that we would come up with so that we can begin to expedite our reconciliations as soon as possible.”

Read Also: Shettima inaugurates NDPHC management

She pledged her commitment towards partnering with the NERC to grow and add greater value to the Nigerian Electricity Supply Industry (NESI).

Responding, Garba said the Commission will always provide every possible support without bending the rules to make sure that the significant investment made by the three tiers of government in the company is brought to bear for the benefit of Nigerians.

He admitted that the challenges are quite important and require strategic direction for the organization

“We do understand that the challenges are quite significant.

“There is probably a need for more focus on strategic direction for the organization so that the little you have, it will spread too thick to a point where you do not deliver on anything,” he said.

Addressing reporters, Adighije said the management team was on a familiarization visit to NERC, to also express gratitude and deliver commitment for the deliverance of greater value in the industry. 

The Managing Director said the positive feedback she got from the commission has inspired the management team to go back to align fully with the directive of the orders and mandate of NERC for the common good of the industry.

She said the team is ready to hit the ground running to deliver on its mandate.From John Ofikhenua, Abuja

The Niger Delta Power Holding Company (NDPHC) has sought a directive for debt recovery from the Nigerian Electricity Regulatory Commission (NERC).

The NDPHC’s managing director, Jennifer Adighije, disclosed this as she led the company’s new management on a first official working visit to the Nigerian Electricity Regulatory Commission (NERC) in Abuja.

She said owing to the burden of debt the company is bearing, its board chairman, Vice President Kashim Shettima has charged it to recover the money.

The Vice President, she said, also charged the company to present a report on the recovery in two weeks.

Her words: “Our rising debt exposure, amongst other issues, were very key subjects of discussion, which is now threatening the survival of the company.

“This compelled the chairman to give us a directive to pursue debt recovery, amongst other issues, very aggressively, and report back on the progress made within two weeks.”

Adighije lamented that the firm which has the largest generation capacity is grappling with debt.

She acknowledged that the success of NDPHC in its exercise is subject to its cooperation and partnership with NERC.

The Managing Director also said there are several activities and valuations that are ongoing in the firm.

Soliciting the support of NERC, she urged the chairman, Engr. Sanusi Garba to expedite action in his internal process to deliver positive results while reporting to Shettima.

Adighije pleaded with Garba to set up a technical working committee to commence action on the issues.

The NDPHC boss said, “Therefore we appeal to you to use your kind of this to expedite your internal processes to ensure that we deliver positive results back to the chairman of the board.

 “I would humbly request that you can, after this meeting, you can set up a technical working committee to begin to start to look at the issues that we would come up with so that we can begin to expedite our reconciliations as soon as possible.”

She pledged her commitment towards partnering with the NERC to grow and add greater value to the Nigerian Electricity Supply Industry (NESI).

Responding, Garba said the Commission will always provide every possible support without bending the rules to make sure that the significant investment made by the three tiers of government in the company is brought to bear for the benefit of Nigerians.

He admitted that the challenges are quite important and require strategic direction for the organization

“We do understand that the challenges are quite significant.

“There is probably a need for more focus on strategic direction for the organization so that the little you have, it will spread too thick to a point where you do not deliver on anything,” he said.

Addressing reporters, Adighije said the management team was on a familiarization visit to NERC, to also express gratitude and deliver commitment for the deliverance of greater value in the industry. 

The Managing Director said the positive feedback she got from the commission has inspired the management team to go back to align fully with the directive of the orders and mandate of NERC for the common good of the industry.

She said the team is ready to hit the ground running to deliver on its mandate.

The Nigerian Electricity Regulatory Commission (NERC) has  transfered regulatory oversight of the electricity market in Edo to the State Electricity Regulatory Commission (ESERC).

This is contained in a document posted on the commission’s website, a copy of which was obtained by the News Agency of Nigeria (NAN) in Abuja on Wednesday.

The commission recalled that with the Electricity Act (EA) 2023, NERC retained the role as a central regulator 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 request to NERC.

“The aim is to transfer regulatory authority over electricity operations in the state to the state regulator,’’ it said.

The commission said that based on this, the government of Edo complied with the conditions precedent in the laws, duly notified NERC and requested for the transfer of regulatory oversight of the intrastate electricity market to the state.

Read Also: NERC issues 68 regulatory instruments

The commission said that the transfer order has the following provisions:

“Direct Benin Electricity Distribution Company (BEDC) to incorporate a subsidiary (BEDC SubCo) to assume responsibilities for intrastate supply and distribution of electricity in Edo from BEDC.

“The company shall complete the incorporation of BEDC SubCo within 60 days from Aug. 21, 2024.

“The sub company shall apply for and obtain licence for the intrastate supply and distribution of electricity from ESERC among other directives,’’ it said.

The commission said that all transfers envisaged by this order should be completed by  Feb. 20, 2025.

(NAN)

The Nigerian Electricity Regulatory Commission (NERC) said it has issued 68 regulatory instruments in the first quarter of 2024 (Q1 2024).

This was made known in the commission’s X handle.

It noted that the instruments include: 12 new licenses,  six new Metering Services Providers, Meter Assets Provider certificates.

The commission said the instruments also include five mini- grid permits.

Read Also: NERC transfers regulatory power to Oyo

NERC further noted that it also issued 36 new orders and nine Captive Generation Permits.

“NERC issued 68 regulatory instruments in the first Quarter of 2024 as follows: > 12 New Licenses > 6 New MSP and MAP Certificates > 5 Minigrid Permits > 36 New Orders > 9 Captive Generation Permits,” the commission said. 

The Electricity Act 2023 liberalised the Nigerian Electricity Supply Industry (NESI) paving the way for states and to generate, transmit, and distribute power.

With the issuance of new instruments, new operators have entered the industry, which may culminate in additional electricity supply.

The Nigerian Electricity Regulatory Commission (NERC) yesterday announced the transfer of regulatory oversight of electricity market in Oyo State to the state’s Electricity Regulatory Commission (ISERC).

This was contained in an order, dated August 5, 2024, titled: “Order No: NERC/2024/110.”

The commission said the transfer takes effect from yesterday (August 6).

“This order takes effect from August 6, 2024,” said the commission’s chairman, Sanusi Garba, and the Commissioner Legal Licensing and Compliance, Dafe Akpeneye, who signed the document.

The NERC exercises regulatory oversight of the Nigerian Electricity Supply Industry (“NESI”) as the apex sectoral regulator in accordance with powers conferred by the Electricity Act 2023 (“EA” or the “Act”).

The electricity market in Nigeria was previously centralised and the move to decentralise it was achieved when a presidential assent was granted to the amendment of relevant portions of the Constitution of the Federal Republic of Nigeria (“CFRN”) on March 17, 2023.

With the EA 2023, the commission retains the role as a 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, NERC said the Government of Oyo 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 Oyo State.

The transfer Order by NERC has the following provisions: – Direct Ibadan Electricity Distribution Company (IBEDC) to incorporate a subsidiary (IBEDC SubCo) to assume responsibilities for intrastate supply and distribution of electricity in Oyo State from IBEDC.

Read Also: NERC transfers regulatory power to Oyo

It also directed that IBEDC shall complete the incorporation of IBEDC SubCo within 60 days from August 6, 2024.

The sub-company, said the order, shall apply for and obtain licence for the intrastate supply and distribution of electricity from OSERC, among other directives.

The order insisted that all transfers envisaged by this order shall be completed by 5th February 2025.

NERC added: “The commission shall prepare 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. “

The Nigerian Electricity Regulatory Commission (NERC) on Tuesday, August 6, announced the transfer of regulatory oversight of electricity market in Oyo State to the Oyo State Electricity Regulatory Commission (ISERC).

This was contained in an order dated 5th August 2024, titled: “Order No: NERC/2024/110.”

 The commission noted that the transfer takes effect from August 6, 2024.

“This order takes effect from 6 August, 2024,” said the chairman Engr. Sanusi Garba and Commissioner Legal Licensing and Compliance , Barrister Dafe Akpeneye, who signed the document.

Recall that NERC exercises regulatory oversight of the Nigerian Electricity Supply Industry (“NESI”) as the apex sectoral regulator in accordance with powers conferred by the Electricity Act 2023 (“EA” or the “Act”).

The electricity market in the Federal Republic of Nigeria was previously centralised and the move to decentralisation was achieved when presidential assent was granted to the amendment of relevant portions of the Constitution of the Federal Republic of Nigeria (“CFRN”) on 17 March 2023.

Paragraph 14(b) Part II of the Second Schedule to the 1999 CFRN which provides that “a House of Assembly may make laws for the State with respect to generation, transmission, and distribution of electricity to areas not covered by a national grid system within that State.” 

The order noted: “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 Oyo State from the Commission to the Oyo State Electricity Regulatory Commission (OSERC).”

With the EA 2023, the Commission retains the role as a 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, according to NERC, the Government of Oyo 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 Oyo State.

The transfer Order by NERC has the following provisions: – Direct Ibadan Electricity Distribution Company (IBEDC) to incorporate a subsidiary (IBEDC SubCo) to assume responsibilities for intrastate supply and distribution of electricity in Oyo State from IBEDC.

It also directed that IBEDC shall complete the incorporation of IBEDC SubCo within 60 days from 6th August 2024. 

The sub-company, said the order ,shall apply for and obtain licence for the intrastate supply and distribution of electricity from OSERC, among other directives.

The order insisted that all transfers envisaged by this order shall be completed by 5th February 2025.

NERC said: “The Commission shall prepare 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 sublect 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.

Read Also: NERC transfers regulatory oversight to Imo

“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.Dated this 5th day of August 2024.” 

The Nigerian Electricity Regulatory Commission (NERC) has transferred regulatory oversight of the electricity market in Imo State to the Imo State Electricity Regulatory Commission (ISERC).

This was contained in its Order NO: NERC/2024/073, dated 27th day of June 2024, which The Nation obtained in Abuja yesterday.

According to NERC, the “Order shall take effect from 1 July 2024.”

The commission said the order is in compliance with the Electricity Act 2023 (amended).

All transfers envisaged by this order shall be completed by 31 December 2024, said, chairman, Engr. Sanusi Garba.

Chairman and Commissioner, Legal, Licensing and Compliance, Barrister Dafe Akpeneye signed the order.

“This Order shall take effect from 1 July 2024,” said NERC.

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The electricity market in the Federal Republic of Nigeria was previously centralised and the move to decentralisation was achieved when presidential assent was granted to the amendment of relevant portions of the Constitution of the Federal Republic of Nigeria (“CFRN”) on 17 March 2023.

 Paragraph 14(b) Part II of the Second Schedule to the 1999 CFRN which provides that “a House of Assembly may make laws for the State with respect to generation, transmission, and distribution of electricity to areas not covered by a national grid system within that State” was amended to “a House of Assembly may make laws for the State with respect to generation, transmission, and distribution of electricity to areas within that State”.

This amendment granted legislative autonomy to federating states in the Federal Republic of Nigeria by empowering the sub-national governments to legislate on the generation, transmission and distribution of electricity within each respective state.

Meanwhile, the commission noted that the order seeks to – Commence the process of the transfer of regulatory oversight for the intrastate electricity market in Imo State from the Commission to ISERC in accordance with the CFRN and the EA.

NERC the order provides a transition plan for the transfer of regulatory oversight for the intrastate electricity market in Imo State from the Commission to ISERC in accordance with the CFRN and the EA.

It seems to address ensuing transitional matters arising from the transfer of regulatory oversight for the intrastate electricity market in Imo State from the Commission to ISERC.

NERC hereby orders as follows: “Enugu Electricity Distribution Company (“EEDC”) is hereby directed to incorporate a subsidiary (“EEDC SubCo”) under the Companies and Allied Matters Act for the assumption of responsibilities for intrastate supply and distribution of electricity in Imo State from EEDC.

“EEDC shall complete the incorporation of EEDC SubCo within 60 days from the effective date of this Order and, EEDC SubCo shall apply for and obtain a licence for the intrastate supply and distribution of electricity from ISERC.

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