…PHEDC to Form Subsidiary Within 60 Days
By Destiny Young
The transfer of regulatory oversight of Akwa Ibom’s intrastate electricity market from the Nigerian Electricity Regulatory Commission (NERC) to the Akwa Ibom State Electricity Regulatory Commission (AKSERC) is part of Nigeria’s broader decentralisation under the amended Constitution and the Electricity Act 2023. NERC issued the order around 18–19 August 2026; full transition (including related operational changes) is targeted for completion by 17 February 2027.
Port Harcourt Electricity Distribution Company (PHEDC) must incorporate a subsidiary (PHEDC SubCo) within 60 days of the order to handle intrastate supply and distribution in the state; that subsidiary will seek a licence from AKSERC. NERC retains authority over interstate/international generation, transmission, trading, and system operations.
This shifts primary local regulation (licensing of in-state operators, tariffs for intrastate supply, technical/service standards, consumer complaints, metering disputes, and market development within the state) to AKSERC. Implications for electricity consumers in Akwa Ibom include the following:
Potential benefits
1. Closer, more responsive oversight and complaint handling: Once transitioned, consumers should direct billing disputes, metering delays/issues, estimated billing complaints, service quality problems, and related grievances to AKSERC rather than NERC. Local regulation is intended to bring decision-making and enforcement nearer to residents, potentially speeding up resolution compared with a national body.
2. Policies and investments tailored to state realities: AKSERC can prioritise local generation (including assets such as Ibom Power where applicable), renewables, mini-grids, rural/underserved electrification, and market rules suited to Akwa Ibom’s needs and resources. The state’s Electricity Law 2025 and policy emphasise expanding access, competition, local content, transparency (e.g., licensee portals with performance data), and consumer protection. Governor Umo Eno has publicly charged the commission with overhauling the sector toward more reliable supply.
3. Focused distribution operations: A dedicated PHEDC SubCo licensed and overseen at state level could improve accountability and investment focus on Akwa Ibom networks, rather than treating the state as one part of a multi-state DisCo footprint.
4. Longer-term service and access improvements: Decentralisation aims to attract private investment, promote competition, and raise service standards by aligning regulation with local priorities. Successful state transitions elsewhere have been framed around driving market growth and stronger consumer protection.
The transfer of Akwa Ibom’s intrastate electricity regulation from NERC to AKSERC (with full transition by February 2027 and a new PHEDC SubCo) decentralises local control over tariffs, licensing, standards and consumer complaints while NERC keeps interstate and national-grid powers. For consumers this promises closer, faster complaint handling, policies tailored to state needs (including local generation and rural access), more focused distribution, and potential long-term gains in reliability, provided the new state regulator builds capacity and works effectively with operators.
