Ondo State has officially taken charge of its electricity market effective 22nd of October 2024 when oversight by the Nigerian Electricity Regulatory Commission (NERC) came to an end.
The transfer followed directives from NERC issued on April 22, 2024, granting Ondo State the authority to manage its electricity market after fulfilling all legal requirements.
This is considered as a significant move towards energy independence and improved local governance in the state.
This development marks the end of the transfer process from NERC to the Ondo State Electricity Regulatory Bureau (OSERB). The historic handover was in accordance with the alteration to Sections 14 and 15 (Part II) in the Second Schedule under the concurrent legislative list of the Constitution of the Federal Republic of Nigeria and the Electricity Act 2023.
Ondo State Electricity Regulatory Bureau is expected to grant an interim license to BEDC Electricity Ondo Limited, a subsidiary of the Benin Electricity Distribution Plc (BEDC). This newly formed entity or SubCo, has been registered with the Corporate Affairs Commission (CAC).
The move is aimed at ensuring a more efficient and localized management of electricity distribution, promising better service delivery to residents.
Earlier in July 2024, the Governor of Ondo State, Hon. Lucky Orimisan Aiyedatiwa, set up a high-power electricity transition regulatory committee to oversee the process. The Committee, headed by Engr. Tunji Ariyomo FNSE had the Special Adviser to the Governor on Energy as the Vice Chairman and the State Coordinator of the Ondo State Electricity Regulatory Bureau, Engr. Stephen Bolawole FNSE as Secretary.
Other members of the committee are Mrs. Iyabo Adefemi, Engr Sunday Okedele, Engr. Mayowa Ajimobi, and Engr. Omoniyi Olugbenga.
The Committee has now completed the first batch of Regulations for the market and the draft amendment of the State Power Sector Law.
Governor Aiyedatiwa had emphasized the importance of this transition for the economic development of the state, noting that local control over electricity distribution would allow for more tailored solutions to the energy needs of Ondo State.
The completion of this transition marks a new era for Ondo State’s energy sector, with expectations that the localized control will lead to enhanced power supply, reduced outages, and a stronger regulatory framework tailored to the needs of the state.
The Ondo State Electricity Regulatory Bureau will now assume full regulatory responsibilities overseeing the operations of all distribution companies, licensees, and operators while ensuring compliance with state and federal laws.
In the past four years, Ondo State has taken the lead in the quest for the decentralization of the electricity sector in the country by first passing a state power sector law in 2020. In 2021, the state became the first to set up a state electricity regulatory commission by law and has now become the first to issue state-authorized electricity generation licenses in the history of Nigeria. The licenses were personally handed over to beneficiary companies by Hon. Lucky Aiyedatiwa.
This epic accomplishment represents not only a milestone for Ondo State but a model for any state desirous of leveraging the constitution to reposition its power sector
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