By Mary Izuaka

 

The Nigerian Electricity Regulatory Commission (NERC) has transferred regulatory oversight of the electricity market in Akwa Ibom State to the Akwa Ibom State Electricity Regulatory Commission (AKSERC), marking the latest step in the decentralisation of Nigeria’s power sector.

The transfer, contained in an order signed by NERC Chairman Musiliu Oseni and Commissioner for Legal, Licensing and Compliance, Dafe Akpeneye, takes effect from 18 August 2026.

In the order issued on Wednesday, NERC said the decision was made in compliance with the amended Constitution of the Federal Republic of Nigeria (CFRN) and the Electricity Act 2023 (Amended), which empowers states to regulate electricity generation, transmission and distribution within their territories.

The development follows the state government’s notification to NERC that it had fulfilled the legal requirements for assuming regulatory control of its intrastate electricity market under the Electricity Act 2023.

What the order directs

Under the new arrangement, AKSERC will have exclusive responsibility for determining and adopting the end-user tariff methodology applicable within its regulatory jurisdiction.

NERC said the final end-user tariffs approved by AKSERC will be the exclusive tariffs applicable in Akwa Ibom, while tariff policy support for end-use customers will remain the responsibility of the state government.

AKSERC will also assume sole responsibility for customer complaint handling, dispute resolution and consumer protection within the state.

However, NERC will retain regulatory authority over cross-border transactions involving the national grid and generation and transmission services connected to grid-connected plants.

“The Commission 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 order states.

Under the order, NERC directed Port Harcourt Electricity Distribution Plc (PHEDC) to incorporate a subsidiary (PHEDC SubCo) to assume responsibilities for intrastate supply and distribution of electricity in Akwa Ibom State from PHEDC.

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NERC gave PHEDC 60 days from August 18, 2026, to complete the incorporation.  The new SubCo is also required to apply for and obtain a licence from AKSERC for intrastate supply and distribution, and to comply with other directives outlined in the order.

NERC said all transfers envisaged by the Order shall be completed by 17th February 2027.