In Historic Move EERC Assumes Full Regulation of Enugu State Electricity Market

*Issues licenses to Mainpower, Fedikore 

*Mainpower takes over from EEDC in Enugu State

Gideon Arinze in Enugu

In a historic move, the Enugu State Electricity Regulatory Commission (EERC), Tuesday, assumed full regulatory oversight of the Enugu State electricity market following the lapsing of the transition period for the transfer of regulatory oversight from the Nigeria Electricity Regulatory Commission (NERC) to the state agency.
The development made Enugu the first state to commence the development of a sub-national electricity market in both Nigeria and Africa.
It also saw EERC issue licenses to Mainpower Electricity Distribution Limited, an EEDC subsidiary set up to take over electricity operations of EEDC in Enugu State effective midnight of Wednesday, and the first Independent Power Project (IPP) in Enugu State, and Fedikore Limited to build a power plant with a nameplate capacity of 10MW.
The latest developments followed the enactment of the Enugu State Electricity Law 2023, and the setting up of the EERC, which saw Enugu State emerge in April as the first state to be handed the regulatory power over its electricity market by NERC, but with a six-month transition period, which elapsed on Tuesday.
The state was now effectively empowered to fully exercise the constitutional right to develop its electricity sector across the value chain of generation, transmission, distribution, or retailing services, including Mini-Grid and Off-Grid electrification solutions.
Chairman of EERC, Chijioke Okonkwo, described the event as significant “as it marks the beginning of the development of sub-national electricity markets not only in Nigeria, or West Africa, but across the African continent”.
Okonkwo said, “Today completes the six months transition for the transfer of regulatory authority from the national regulator, NERC, to the EERC, as stipulated in Section 230 of the Electricity Act 2023, and the consequential Order of NERC dated 22nd April 2024.
“Today, we now take on the monumental responsibility of regulating and guiding the electricity sector in Enugu State. This assumption of regulatory oversight is not just about the transfer of authority, but represents a shared vision for a more efficient, responsive, and innovative electricity market.
“NERC has laid a strong foundation, and we are confident that EERC will build on that legacy to bring about positive changes for the people of Enugu State and beyond, in line with Enugu’s realities.
“Our mission is clear: to ensure that Enugu has access to reliable, cost effective, and sustainable electricity while promoting fairness and innovation in the sector.
“We are here to enhance the quality of life for all residents, businesses, and stakeholders by creating an efficient regulatory environment that fosters growth and transparency.”
The chairman commended the Governor Peter Mbah administration for zero political interference in the affairs of the commission.
He stated, “I must say that we have enjoyed a tremendous level of independence from the state government activities and our own role. We have been established and supported to take off. However, we have also been given the authority and independence to develop the regulations and policies that we have put in place, not minding how they impact on the state government.”
A board member of Mainpower Electricity Distribution Ltd, Kester Enwereonu, assured the people of the state of a better electricity experience in all ramifications.
Enwereonu said, “We are not just identifying with EERC as the pacesetter, Mainpower will also want to be the pacesetter. We are assuring you that in the coming weeks, months, and years, and with the regulatory structure that are now tailored to the needs and purposes of the state, we are going to have an improved service to the people of Enugu State.”

Founder and MD/CEO of Fedikore Ltd, Dr. Chukwueloka Umeh, described the development as revolutionary, expressing Fedikore’s joy to partner with EERC.

Umeh said, “The EERC has done a fantastic job in starting this revolution that is about to happen and we are pleased to be a part of it. Fedikore set up last year as the first IPP in Enugu State. We built 4mw plant at 9th Mile to supply power to the Enugu State Water Corporation here in Enugu.

“So, we are very committed to working with the state, especially given the leadership provided by both the government and the EERC so far. We believe that with the support of EERC, the state and with the partnership with Mainpower, we can do amazing things here to start the industrial revolution that we are talking about for many years. It is possible.”