Tomorrow, Enugu State will make history in Nigeria’s Electricity Supply Industry (NESI) as the transition of regulatory oversight from the Nigerian Electricity Regulatory Commission (NERC) to the Enugu State Electricity Regulatory Commission (EERC) is completed. This landmark event solidifies the state’s constitutional right to control and develop its electricity sector across all levels, from generation to distribution, including Mini-Grid and Off-Grid solutions.
In a statement from the Executive Chairman of EERC, Chijioke Okonkwo, this transition positions Enugu as the first state in Africa to establish a sub-national electricity market. Under the leadership of Governor Dr. Peter N. Mbah, the state has led the way in shaping a model for decentralized power regulation in the country. Starting October 22, 2024, the EERC will issue licenses, including one to Mainpower Electricity Distribution Limited, which will take over operations from the Enugu Electricity Distribution Company (EEDC). Additionally, a generation license will be granted to Fedikore Limited, the state’s first Independent Power Producer (IPP), for a 10MW capacity.
The EERC is extending an open invitation to electricity investors, developers, financiers, and service providers to seize the opportunities presented by Enugu’s evolving energy landscape. Under a “willing buyer, willing seller” framework, backed by effective power purchase agreements, service providers will be able to recover their costs and achieve reasonable returns on investment. Meanwhile, consumers can expect enhanced service delivery with a focus on reliability, accountability, and sustainability.
This move not only sets a precedent for other states in Nigeria but also positions Enugu as a pioneer in electricity sector reform on the African continent. The state is now a beacon for innovation and private-sector investment in energy, signaling the start of a new era of progress and energy security.
