Leadnaija
The Nigerian Electricity Regulatory Commission (NERC) has commenced the process of transferring the Regulatory Oversight of Electricity Market in Abia State to Abia State Electricity Regulatory Agency (ASERA) via Order ā NERC/2025/058 in line with Electricity Act 2023 as amended with effect from June 25, 2025.
NERC stated that Abia has fully complied to the provisions of section 230 (2) of the Electricity Act 2023 and having dully notified the Commission and requested that the transfer of the regulatory oversight of the state electricity market to Abia State.
By this transfer order, the Successor DISCO in the state, Enugu Electricity Distribution Company (EEDC) is expected to incorporate a subsidiary to assume the responsibilities of intra-state supply and distribution of electricity in Abia State.
Reacting to this power sector development in the state, the Commissioner for Power and Public Utilities Engr Ikechukwu Monday stated that the transfer of regulatory oversight of intra-state electricity markets from NERC to ASERA is in line with the promise of His Excellency, Dr. Alex Otti to provide reliable electricity access to unserved and underserved industries and communities in the state. He further stated that it will bring several benefits to the people of state such as:
1. Localised state-tailored tariff structures which will set end-user tariffs that reflect local economic conditions, encouraging fairer pricing and better cost recovery.
Also, ASERA can rapidly adjust rules and incentives to suit local goalsāsuch as supporting mini-grids or renewable energy projects.
2. Efficient service delivery & reliability: with ASERA located in Umuahia, it will be able to provide a faster local and closer oversight which reduces delays in licensing, complaints handling, and issue resolutionāhelping to bolster local service quality.
3. State focused grid improvement programmes: ASERA will be able to better prioritize grid expansion or maintenance programmes tailored to the demands in the state where itās most needed.
4. Increased investment & private sector participation: ASERA will be able to set state-level clarity on regulations, tariffs, and licensing that will make it easy for private operators (e.g., mini-grid and transmission companies) to invest. Also, distribution companies such as EEDC will be directed to establish state-focused subsidiaries (e.g., āSubCoā), enabling targeted investment within the state borders.
5. Improved accountability as ASERA will be closer to the people of the state and more accountable to residents and state government, improving transparency and consumer trust.
6. Job creation: As the market evolves and get matured several employment and manpower development opportunities will be generated.
Finally, the process of transfer of regulatory obligations to the state is expected to be concluded in six months, so 24th December 2025 is the deadline.
