NERC Transfers Electricity Market Oversight in Bayelsa to State Regulator

The Nigerian Electricity Regulatory Commission (NERC) has formally transferred regulatory oversight of the electricity market in Bayelsa State to the Bayelsa State Electricity Regulatory Agency (BYERA), marking another step in the country’s ongoing power sector decentralization.

The announcement was made on Monday via NERC’s official X (formerly Twitter) handle. The Commission explained that the move was in compliance with the amended Constitution of the Federal Republic of Nigeria and the Electricity Act (EA) 2023, which empowers states to regulate electricity generation, transmission, and distribution within their borders.

Details of the Transfer

According to NERC, the Port Harcourt Electricity Distribution Company Plc (PHED) has been directed to create a new subsidiary, PHED SubCo, to handle electricity supply and distribution strictly within Bayelsa State.

“PHED shall complete the incorporation of PHED SubCo within 60 days from 21st August 2025,” the Commission stated, adding that the new entity must obtain a licence from BYERA before assuming full operational responsibilities.

The regulatory handover and operational transition are expected to be concluded by 20th February 2026.

Broader Context

While the Electricity Act 2023 grants states control over their intrastate electricity markets, NERC will continue to function as the central authority for interstate and international electricity generation, transmission, trading, and system operations.

The Commission emphasized that the transition in Bayelsa aligns with ongoing reforms designed to improve efficiency, accountability, and access in Nigeria’s electricity sector.

Growing Trend of State-Level Regulation

Bayelsa is the latest in a growing list of states to assume regulatory control of their electricity markets under the new framework.

• In 2025, NERC transferred oversight to Abia State (ASERA), Plateau State (PSERC), Niger State (NSERC), and most recently, Nasarawa State (NASERC).
• In 2024, Lagos State became the first to assume full regulatory powers with the establishment of the Lagos State Electricity Regulatory Commission (LASERC).
• Ogun, Ekiti, and Ondo States also established their own electricity regulatory commissions last year, following similar transfers.

Why This Matters

The decentralization of electricity regulation is expected to give states greater flexibility to address their unique energy challenges, attract investment, and enhance power supply reliability. For Bayelsa, where power supply has historically lagged behind demand, local oversight could fast-track reforms and improve service delivery.

Analysts say the state-led regulatory model has the potential to foster competition, promote innovation, and empower states to tailor electricity services to local realities while easing the burden on NERC.