NERC Okays 17 States To Regulate Electricity Market

The Nigerian Electricity Regulatory Commission (NERC) has approved the transition of 17 states to regulate electricity markets within their territories, marking a major shift towards a decentralised electricity regulatory framework under the Electricity Act 2023.

The development followed NERC’s latest transfer of regulatory oversight of the intrastate electricity market in Akwa Ibom State to the Akwa Ibom State Electricity Regulatory Commission (AKSERC), making the state the latest to assume control of its electricity market.

NERC had confirmed that 16 states had fully transitioned to state-level electricity regulation as of July 22, 2026.

With the transfer to Akwa Ibom, the number of states moving towards autonomous regulation rises to 17, although the state is expected to complete the transition process by February 2027.

The transfer is rooted in the provisions of the Electricity Act 2023, which empowers state governments to establish regulatory authorities for electricity markets within their territories, subject to formal notification and the transfer of regulatory responsibilities by NERC.

Under the new framework, NERC will continue to regulate electricity activities that fall within federal and interstate jurisdiction, including interstate and international generation, transmission, supply, trading and system operations.

In the case of Akwa Ibom, the Commission directed the Port Harcourt Electricity Distribution Plc (PHEDC) to incorporate a subsidiary, PHEDC SubCo, which will take responsibility for intrastate electricity supply and distribution in the state.

NERC said PHEDC must complete the incorporation of the subsidiary within 60 days from August 18, 2026, after which the new company is expected to apply to AKSERC for a licence to operate the state’s intrastate electricity supply and distribution market.

The Commission further directed that all transfers contemplated under the order must be completed by February 17, 2027.

THE WHISTLER recalls that
the decentralisation of electricity regulation represents one of the key changes introduced by the Electricity Act 2023, which seeks to provide a legal framework for states to participate more directly in electricity generation, distribution and regulation.

Before the Act, electricity regulation was largely centralised under NERC, limiting states’ ability to oversee electricity activities within their jurisdictions independently.

NERC has since transferred regulatory oversight to a number of states, including Ogun, Edo, Oyo, Kogi, Plateau, Nasarawa, Bayelsa and Anambra, among others.

The Commission has also established a directory of State Electricity Regulatory Commissions to enable electricity consumers, investors and other stakeholders to identify the appropriate regulatory authority within each state.