NERC Transfers Electricity Regulatory Oversight to Bayelsa State

•N’Delta state is 15th sub-national to apply for independent control

Emmanuel Addeh in Abuja

In compliance with the amended Electricity Act (EA) 2023, the Nigerian Electricity Regulatory Commission (NERC) has issued an order to transfer regulatory oversight of the electricity market in Bayelsa state to the Bayelsa State Electricity Regulatory Agency (BYERA).
Recall that with the EA 2023, the commission retains the role as a central regulator with regulatory oversight on the inter-state/international generation, transmission, supply, trading, and system operations.
The EA also mandates any state that intends to establish and regulate intrastate electricity markets to deliver a formal notification of its processes and request NERC to transfer regulatory authority over electricity operations in the state to the state regulator.
In a statement in Abuja yesterday confirming the development, NERC said Bayelsa had fulfilled the legal and procedural requirements needed to take charge of its intrastate electricity market up until this point.
These included the enactment of a state electricity law, a clear roadmap for establishing a functioning regulatory agency, and evidence of readiness to implement sectoral oversight in accordance with national standards.
With this approval, Bayelsa joins 14 other states, including Enugu, Ekiti, Ondo, Imo, Oyo, Edo, Kogi, Ogun, Niger, Abia, Lagos, Delta, Plateau and Nasarawa that have either received similar authorisation or completed full regulatory transfers.
Also, with the transfer order by NERC, Port Harcourt Electricity Distribution Company Plc (PHED) is to incorporate a subsidiary (PHED SubCo) to assume responsibilities for intrastate supply and distribution of electricity in Bayelsa, NERC stated.
Under the new structure, BYERA will be responsible for licensing local electricity providers, setting its own tariffs, monitoring compliance with service standards, resolving consumer complaints, and promoting investment in off-grid and embedded power solutions tailored to the state’s energy needs.
The decentralisation of electricity regulation was made possible by the EA signed into law in June 2023, which repealed the Electricity and Power Sector Reform Act (EPSRA) of 2005.
The new law allows states to regulate their electricity markets, especially in areas not covered by the national grid, as long as they establish their own regulatory authorities.
The NERC order directed: “Port Harcourt Electricity Distribution Company Plc (PHED) to incorporate a subsidiary (PHED SubCo) to assume responsibilities for intrastate supply and distribution of electricity in Bayelsa State from PHED.
“(And) complete the incorporation of PHED SubCo within 60 days from August 21, 2025”, while the subcompany shall apply for and obtain licence for the intrastate supply and distribution of electricity from BYERA, NERC stated, among other directives.
“All transfers envisaged by this order shall be completed by February 20, 2026,” the statement by NERC emphasised.