In Historic Devt, EERC Assumes Full Regulation of Enugu Electricity Market

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In a groundbreaking development, the Enugu State Electricity Regulatory Commission (EERC) has officially taken over regulatory authority of the electricity market in Enugu State, marking the end of a six-month transition period from the Nigerian Electricity Regulatory Commission (NERC). This milestone, achieved on Tuesday, makes Enugu the first state in Nigeria and Africa to initiate the development of a sub-national electricity market.

As part of this new responsibility, the EERC issued licenses to Mainpower Electricity Distribution Limited, a subsidiary of the Enugu Electricity Distribution Company (EEDC), and to Fedikore Limited, granting them the authority to operate and build a 10MW independent power plant in the region. This change follows the enactment of the Enugu State Electricity Law of 2023 and positions Enugu to enhance its electricity sector across the entire value chain, including generation, transmission, distribution, and retail services, along with mini-grid and off-grid electrification solutions.

I had the opportunity to speak with Chijioke Okonkwo, Chairman of EERC, who emphasized the significance of this transition. “This is a pivotal moment, not just for Nigeria or West Africa, but for the entire African continent,” he remarked. “Today marks the completion of the six-month transitional authority transfer from NERC to the EERC, as outlined in Section 230 of the Electricity Act of 2023.”

He elaborated, “Taking on this regulatory oversight means more than just authority; it signifies our commitment to creating a more responsive, efficient, and innovative electricity market. With the sound foundation laid by NERC, we are poised to drive positive changes for the people of Enugu State while addressing local realities.”

Okonkwo reiterated their mission: “We aim to ensure that Enugu State enjoys reliable, cost-effective, and sustainable electricity. Our objective is to enhance the quality of life for residents and businesses by fostering a transparent and growth-oriented regulatory environment.”

The Chairman also praised Governor Peter Mbah’s administration for maintaining a non-interfering stance regarding the Commission’s operations. “We have enjoyed significant independence, allowing us to develop policies and regulations that consider the state’s needs without undue influence,” he noted.

Kester Enwereonu, a board member of Mainpower Electricity Distribution Ltd, assured citizens of a transformed electricity experience. “As we align with EERC’s pioneering efforts, Mainpower intends to follow suit,” he said. “We are committed to delivering improved services in the weeks, months, and years ahead, thanks to a regulatory structure tailored to the state’s needs.”

Dr. Chukwueloka Umeh, Founder and MD/CEO of Fedikore Ltd, described the ongoing developments as revolutionary, emphasizing their eagerness to collaborate with EERC. “The EERC has laid the groundwork for this transformative journey, and we are excited to contribute. Last year, we established the first Independent Power Project in Enugu, launching a 4MW plant at the 9th Mile to supply power to the Enugu State Water Corporation. With strong leadership from both the government and EERC, we believe that together – with support from EERC and Mainpower – we can ignite the industrial revolution that Enugu has long envisioned.”