By Bassey Udo
The Nigerian Electricity Regulatory Commission (NERC) has given February 17, 2027 as deadline for the completion of the transition of regulatory authority to the Akwa Ibom State Electricity Regulatory Commission (AKSERC).
The deadline was contained in the Commission’s Order No. NERC/2026/087 issued to convey the transfer of regulatory oversight of the Akwa Ibom State Electricity Market to the AKSERC.
The Order is in compliance with the amended provisions of the Constitution of the Federal Republic of Nigeria (CFRN) and the Electricity Act 2023 (Amended), which gives the Commission the role as a central regulatory authority with oversight on the inter-state/international generation, transmission, supply, trading and system operations.
The latest transfer of regulatory oversight functions brings to 17 the total number of States in the Federation that the Commission has successfully transferred electricity market regulatory oversight, which empowers the State Electricity Regulators (SERs) to take full responsibility of driving local market growth, investments and ensuring robust customer protection.
NERC said the EA mandates states intending 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 respect of AKSERC, NERC said it has already directed the Port Harcourt Electricity Distribution Plc (PHEDC) to immediately incorporate a subsidiary (PHEDC SubCo) to assume responsibilities for intrastate supply and distribution of electricity in Akwa Ibom State.
The Commission said the PHEDC was expected to complete the incorporation of PHEDC SubCo within 60 days from 18th August 2026, adding that subcompany shall apply for and obtain licence for the intrastate supply and distribution of electricity from AKSERC, among other directives.
Details of the transition contained in a public notice by the Commission said although the order triggers the transition, work is expected to a continue in stages, with electricity distribution customers in Akwa Ibom State should expect a transition rather than sudden change.
Despite the transition, NERC said the Port Harcourt Electricity Distribution Company (PHEDC), which holds the electricity distribution franchise covering Àkwa Ibom State, would continue to supply, meter and bill customers in the State, adding that all existing accounts, meters, and payment channels would remain valid.
Similarly, the Commission clarified that electricity tariffs would not be altered by latest Order, adding that any future review of end-user tariffs would be undertaken by AKSERC in line with due regulatory process, including a comprehensive regulatory review of the cost structure of the tariff by AKSERC and public consultations before any tariff in the State takes effect.
Also, all existing contracts and obligations, licences, permits and agreements would be transitioned to be performed by the Akwa Ibom electricity distribution company.
In terms of regulatory authority for electricity business conducted within Akwa Ibom State, the Commission said agreed to work with AKSERC to ensure that a smooth transition of regulatory authority to AKSERC.
NERC said the provisions of the Order and the Electricity Act requires that by October 17, 2027, PHED was to incorporate a subsidiary electricity distribution company for Akwa Ibom State before applying to AKSERC for a licence to supply and distribute electricity within the State.
During the transition period, the NERC said the Akwa Ibom electricity distribution and transmission network would be identified and separated, with metering installed at appropriate identified technical boundary points and the assets, liabilities, contracts and employees attributable to the State transferred to this Akwa Ibom electricity distribution company.
Bu the end of the transition period, NERC said full regulatory responsibilities for the intrastate market would be passed to AKSERC as required by the 1999 constitution (as amended).
On complaints and issues bordering on consumer protection during the transition period, Section 230(7) of the Electricity Act, 2023 provides that NERC ceases to have regulatory responsibility only on completion of the transfers.
“Responsibility for the Akwa Ibom intrastate market, including consumer protection and dispute resolution, therefore remains with NERC until the transfers are completed, and AKSERC does not assume those responsibilities before that date,” the Commission said.
“Consumers should continue to raise supply, billing and metering matters with PHED in the first instance, while the existing escalation arrangements under NERC’s consumer protection framework would remain in place. “AKSERC will work with PHED and with NERC throughout the transition so that complaints and disputes affecting consumers in the State are resolved, and consumers may bring matters to the Commission’s attention.
“When the transfer process is completed, expectedly by 17th February 2027, these responsibilities would become AKSERC’s, while the Commission will publish its customer care framework, including a complaints procedure, in good time.
Until the transfers are completed and AKSERC takes over regulatory responsibility for the State, NERC said it would remain the regulator of the the intra-State market.
Beyond the transfer completion date, NERC said it would continue to regulate all cross-border or interState electricity transactions in line with Section 230(9) of the Electricity Act, which mandates AKSERC and NERC, along with all other State electricity regulatory bodies, to continue their statutory duty under the Electricity Act to cooperate to ensure that regulatory risk across the Federal and State electricity markets was minimised.
