Edo moves to control electricity market with ESERC

The Edo state Commissioner for Energy, Paul Usenbo, Wednesday, said the establishment of the Edo State Electricity Regulatory Commission (ESERC) represents a major step towards giving the state greater control over its electricity market.

Usenbo, who commended Governor Monday Okpebholo for the initiative, said the creation of the commission would strengthen Edo’s capacity to determine the direction of its electricity sector and ensure that the market responds more effectively to the needs of residents, businesses and industries.

He said the development provides the state with a stronger institutional framework to influence critical decisions on electricity generation, distribution and consumption within Edo.

He noted that regulatory responsibility for the state’s intrastate electricity market had been transferred from the Nigerian Electricity Regulatory Commission (NERC) to ESERC with effect from August 21, 2024, in accordance with the amended Electricity Act.

The commissioner said the development marked a significant shift in the management of Edo’s electricity market, as the state would now have greater capacity to formulate and implement policies suited to its peculiar economic and social circumstances.

Usenbo clarified, “the regulatory transition should not be conflated with completion of the full capitalisation, asset/liability delineation and corporate restructuring of the distribution business.”

The commissioner added that the assets, liabilities, contracts and personnel belonging to the state would also have to be properly identified and formally transferred as part of the restructuring process.

He said the completion of the outstanding processes would help eliminate uncertainty and establish a clearer framework for government agencies, electricity operators, investors and consumers.

He called for closer collaboration among the relevant authorities to ensure that the regulatory transition translates into practical reforms and improved electricity services across the State.

He expressed optimism that the new regulatory structure would stimulate investment in the power sector, improve service delivery and support the broader economic development agenda of the Okpebholo administration.