Edo Takes Charge of Electricity Regulation, Begins Next Stage of Power Sector Reform

From Ebohon Joan

The Edo State Government has taken over the regulation of electricity within the state, marking a new phase in its efforts to reform the power sector and improve electricity supply.

The transfer of regulatory oversight from the Nigerian Electricity Regulatory Commission (NERC) to the Edo State Electricity Regulatory Commission (ESERC) gives the state greater authority over its electricity market.

Commissioner for Power, Paul Usenbo, who announced the development in Benin City, said the move would allow Edo to regulate its electricity sector according to the needs of residents, businesses and industries.

He described the transition as an important step towards attracting investment into the power sector, improving electricity services and supporting economic development across the state.

Usenbo explained that the transfer was carried out in line with the amended Electricity Act, which allows states that meet the required conditions to take control of electricity regulation within their territories.

He said Edo completed the regulatory transition on August 21, 2024, with ESERC taking over the regulatory responsibilities previously handled by NERC.

According to him, the establishment of ESERC provides the state with the institutional structure needed to have a stronger role in shaping the future of its electricity market.

However, the commissioner stressed that taking over electricity regulation does not mean that the restructuring of electricity distribution operations in Edo has been fully completed.

He said the next stage would involve confirming the incorporation and capitalisation of the successor electricity distribution company, as well as formally identifying and transferring the relevant assets, liabilities, contracts and personnel connected to electricity distribution in the state.

Usenbo noted that completing these processes would help remove uncertainties and clearly establish the responsibilities of the different stakeholders in Edo’s emerging electricity market.

He added that the reforms would require effective cooperation among ESERC, the Edo State Ministry of Power and the Benin Electricity Distribution Company (BEDC) to ensure that residents and businesses eventually benefit from the changes.

The commissioner also commended Governor Monday Okpebholo for supporting the establishment and operation of ESERC, saying the administration was creating the foundation for a more effective and investment-friendly electricity market.

He expressed optimism that greater state involvement in electricity regulation would attract new investments, improve power supply and contribute to Edo State’s broader economic development.