Breaking News: Governor Peter Mbah Leads Enugu to Establish Africa’s First Sub-National Electricity Market

Tomorrow, October 22, 2024, marks a historic milestone in the Nigerian Electricity Supply Industry (NESI) as Enugu State takes a significant step forward in its quest for energy independence and localised control of its electricity sector. This day marks the end of the transition period, which transfers regulatory oversight from the Nigeria Electricity Regulatory Commission (NERC) to the newly established Enugu State Electricity Regulatory Commission (EERC).

This pivotal moment is not just a regulatory shift; it’s a powerful affirmation of states’ constitutional rights to develop and regulate their electricity sectors. The transition highlights the growing autonomy of states like Enugu, enabling them to take control of every aspect of their electricity supply chain—generation, transmission, distribution, and retail services. This includes both Mini-Grid and Off-Grid electrification solutions, which are key components of rural electrification and decentralised energy systems.

Under the leadership of Governor Dr. Peter N. Mbah, Enugu State has become a trailblazer, setting the stage as the first state in Nigeria—and indeed in Africa—to embark on the creation of a sub-national electricity market. The Enugu State Electricity Regulatory Commission (EERC) will not only assume full regulatory oversight but also take on the crucial role of issuing licenses to operators in the state’s electricity sector. This development aligns with Enugu’s broader economic agenda of achieving energy security, industrial growth, and enhanced service delivery to its residents.

The most significant aspect of this development is the issuance of a distribution license to Mainpower Electricity Distribution Limited, a newly incorporated entity that will replace the Enugu Electricity Distribution Company (EEDC) in managing the distribution of electricity across Enugu State. Mainpower Electricity Distribution Limited will play a crucial role in ensuring that the people of Enugu receive efficient, reliable, and affordable electricity supply, thereby addressing long-standing challenges in power distribution within the state.

The transition from NERC to EERC is a bold move that underscores Enugu State’s commitment to enhancing the quality of life for its citizens through better infrastructure, energy efficiency, and sustainable development. By establishing a sub-national electricity market, the state will also create an enabling environment for private sector investments in the energy sector, which is expected to lead to job creation, increased economic activities, and improved power generation and distribution services.

 The official handover ceremony is scheduled to take place on Wednesday, October 22, 2024, at the EERC Headquarters, No. 2 Forrest Close, off Forrest Crescent, GRA, Enugu, at 10 a.m. The event will be attended by government officials, industry stakeholders, and representatives of various energy companies. This landmark occasion will not only signal the dawn of a new era for electricity supply in Enugu State but also serve as a model for other states across Nigeria and Africa, looking to decentralise and optimise their power sectors.

As Enugu State forges ahead, this transition represents more than just a shift in regulatory authority; it is a bold statement about the state’s vision for a sustainable, locally controlled energy future that will drive industrialisation, foster economic growth, and uplift the lives of its residents. This historic step could inspire similar initiatives in other Nigerian states, heralding a new era of energy independence and resilience across the country.