The Managing Director Edo State Investment Promotion Office (ESIPO)-Ease of Doing Business Secretariat, Mr. Kelvin Uwaibi has said the establishment of the Edo State Electricity Regulatory Commission (ESERC) as the sole regulator for the state’s electricity market is a significant milestone in the ease of doing business in Edo State.
Uwaibi made this known while addressing journalists in his office in Benin City, Wednesday 21 August 2024 in reaction to the the recent NERC order which has mandated the Benin Electricity Distribution Plc (BEDC) to establish a subsidiary company, BEDC SubCo, to handle the intrastate supply and distribution of electricity in Edo State. By this development , BEDC SubCo will operate under the regulatory oversight of ESERC, ensuring that electricity distribution is more responsive to the unique demands of the state’s economy.
He emphasized that this development is a crucial step in the state government’s efforts to address the electricity needs of Edo State, particularly businesses such as manufacturers as well as the electricity market itself.
According to him, “The transfer of regulatory oversight from the Nigerian Electricity Regulatory Commission (NERC) to ESERC is a direct result of recent constitutional amendments and the provisions of the Electricity Act 2023”
“With the new regulatory framework, Edo State now has the authority to tailor its electricity policies to meet its specific needs, leading to improved efficiency, reliability, and cost-effectiveness in power supply. This is expected to stimulate economic growth, attract investments, and enhance the overall business environment in the state”
Uwaibi who doubles as the secretary of the Edo State Ease of Doing Business Council, further explained that the establishment of ESERC also grants the state the power to determine its own end-user tariff methodology, independent of NERC’s influence. This localized tariff-setting is expected to lead to more competitive pricing, benefiting both consumers and businesses.
“Businesses are our major concern. As government, we are determined to create that enabling environment where businesses thrive, ” he said.
The transfer of regulatory oversight to ESERC is a significant step towards a more efficient and responsive electricity market in Edo State, paving the way for economic growth and improved ease of doing business.