The Nigerian Electricity Regulatory Commission(NERC) has commenced the transfer of regulatory oversight of the electricity market in Akwa Ibom State from the federal regulator to the Akwa Ibom State Electricity Regulatory Commission.
The transfer takes effect from August 18, 2026, following the state government’s formal notification and compliance with provisions of the Electricity Act 2023, as amended.
The development is contained in Order No. NERC/2026/087 issued by the Commission on August 18, 2026.
Under the order, the Port Harcourt Electricity Distribution Company Plc is required to establish a subsidiary, PHED SubCo, to assume responsibility for intrastate electricity supply and distribution in Akwa Ibom State.
NERC directed PHED to complete the incorporation of the subsidiary within 60 days from the effective date of the order and obtain a licence from AKSERC for intrastate electricity supply and distribution.
The Commission also directed PHED to identify the geographical boundaries of its distribution zone in Akwa Ibom and carve out its network in the state as a standalone network, including the installation of boundary meters at points where its network crosses into other states.
As part of the transition, PHED is required to create an asset register covering its power infrastructure located within Akwa Ibom State.
The company is also expected to evaluate and apportion contractual obligations and liabilities attributable to its operations in the state, identify applicable trading points for energy offtake and determine the number of employees required to provide electricity services as a standalone public utility.
The identified assets, contractual obligations, liabilities and employees are to be transferred to PHED SubCo.
NERC will also prepare a register of licences, permits, certificates and other authorisations held by entities operating in Akwa Ibom State.
Entities whose activities fall within the state’s intrastate electricity market will receive notification of the transfer of regulatory oversight to AKSERC, while cross-border transactions involving the national grid will remain subject to NERC approval.
Following the transfer, AKSERC will have exclusive responsibility for determining and adopting the end-user tariff methodology applicable within its regulatory jurisdiction.
Where PHED SubCo receives electricity from grid-connected plants, contracts and tariffs relating to generation and transmission services will remain subject to approval by NERC.
However, final end-user tariffs approved by AKSERC will apply to electricity consumers within Akwa Ibom State, while tariff policy support for end-use customers will remain the responsibility of the state government.
AKSERC will also assume responsibility for customer complaints, dispute resolution and consumer protection within the state once regulatory oversight is transferred.
The state regulator may request technical, advisory or transitional support from NERC, but such support will not affect AKSERC’s exclusive regulatory authority over electricity market activities conducted wholly within Akwa Ibom.
NERC said the transfer is being implemented under the constitutional and legislative changes that expanded the powers of states to legislate on electricity generation, transmission and distribution within their territories
The Commission will continue to regulate interstate and international electricity activities, as well as certain areas including mini-grids and electricity distribution networks that rely on the national grid under the conditions specified in the order.
The order requires all transfers covered by the directive to be completed by February 17, 2027.
NERC said the transition is intended to establish a clear framework for the transfer of regulatory responsibility while maintaining coordination between federal and state electricity regulators.
