Bayelsa Gains Power: NERC Hands Over Electricity Market Regulation to State Agency

Transfer follows constitutional amendment and Electricity Act 2023, paving way for Bayelsa to run and regulate its own power sector.

In a significant milestone for Nigeria’s evolving electricity sector, 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).

The transfer, announced by NERC on its official social media handles on Monday, is in line with the provisions of the amended 1999 Constitution and the Electricity Act 2023.

“In compliance with the amended Constitution of the Federal Republic of Nigeria and the Electricity Act 2023 (Amended), the Nigerian Electricity Regulatory Commission has issued an order to transfer regulatory oversight of the electricity market in Bayelsa State from the Commission to the Bayelsa State Electricity Regulatory Agency,” the notice stated.

A Shift in Power

Under the Electricity Act 2023, NERC retains its role as the central regulator overseeing interstate and international generation, transmission, trading, and system operations. However, the Act empowers states to establish their own electricity markets — provided they notify NERC and establish the required regulatory framework.

Bayelsa has now followed in the footsteps of Lagos, Imo, Ogun, Ondo, Ekiti, Enugu, Niger, Edo, Oyo, and Plateau states, which have already assumed similar regulatory control within their territories.

New Responsibilities and Timeline

To enable this transition, NERC has directed the Port Harcourt Electricity Distribution Company (PHED) to create a subsidiary company (PHED SubCo) that will handle intrastate electricity supply and distribution in Bayelsa.

“The subcompany shall apply for and obtain a licence for the intrastate supply and distribution of electricity from BYERA,” NERC stated.

PHED is expected to complete the incorporation of the new entity within 60 days from August 21, 2025, with all regulatory and operational transfers to be concluded by February 20, 2026.

What This Means for Bayelsa

With this regulatory independence, Bayelsa State now has the authority to:

• Generate, transmit, and distribute electricity within its borders
• License private investors across the power value chain
• Regulate tariffs, standards, and compliance at the state level

The move is expected to boost energy access, improve service delivery, and attract investments into Bayelsa’s power sector — a critical development in a state that has long grappled with electricity supply challenges.

Bayelsa’s entry into the list of states managing their own electricity markets marks another step in Nigeria’s gradual power sector decentralisation. With timelines in place and a state regulator ready to act, the success of this transition will hinge on timely implementation, robust regulation, and strategic investment in infrastructure.