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In a landmark development, the Enugu State Electricity Regulatory Commission (EERC) officially assumed full regulatory control over the state’s electricity market on Tuesday, marking the end of a transition period from the Nigeria Electricity Regulatory Commission (NERC). This move makes Enugu the first state in Nigeria and Africa to establish a sub-national electricity market, setting a new precedent for energy regulation on the continent.
The EERC granted licenses to Mainpower Electricity Distribution Limited, a subsidiary of the Enugu Electricity Distribution Company (EEDC), to take over electricity distribution operations in the state, effective midnight Wednesday. Additionally, Fedikore Limited received a license for the first Independent Power Project (IPP) in Enugu State, which includes plans to build a power plant with a 10MW capacity.
The shift in regulatory power followed the enactment of the Enugu State Electricity Law, 2023, which empowered the state to regulate its electricity sector, including generation, transmission, distribution, and retail services. The six-month transition period, which concluded this week, was set out under Section 230 of the Electricity Act 2023 and NERC’s consequential order issued in April 2024.
EERC Chairman Chijioke Okonkwo highlighted the significance of the transition, stating, “Today completes the six months transition for the transfer of regulatory authority from the national regulator, NERC, to the EERC… We now take on the monumental responsibility of regulating and guiding the electricity sector in Enugu State.” He emphasized that the Commission’s mission is to deliver reliable, cost-effective, and sustainable electricity while fostering fairness and innovation in the market.
Okonkwo commended Governor Peter Mbah’s administration for allowing the Commission to operate independently without political interference. He noted that the EERC has been empowered to implement regulations and policies to benefit the state’s electricity market without state government constraints.
Kester Enwereonu, a Board member of Mainpower Electricity Distribution Ltd, assured residents of significant improvements in electricity services. “We are assuring you that in the coming weeks, months, and years, and with the regulatory structure now tailored to the state’s needs, we are going to have an improved service to the people of Enugu State,” he stated.
Dr. Chukwueloka Umeh, Founder and MD/CEO of Fedikore Ltd, described the development as revolutionary, expressing optimism about the partnership with EERC. He emphasized Fedikore’s commitment to advancing the state’s industrial revolution, citing their previous work on a 4MW plant at 9th Mile as evidence of their dedication to transforming Enugu’s power landscape.
