Akwa Ibom Takes Control Of Its Power Market As NERC Hands Regulation To AKSERC

By OFFIONG ARCHIBONG

A New Regulatory Era for Akwa Ibom Electricity

AKWA Ibom State is moving into a new phase of electricity-sector governance following the transfer of regulatory oversight of its intrastate electricity market from the Nigerian Electricity Regulatory Commission, NERC, to the Akwa Ibom State Electricity Regulatory Commission, AKSERC.

The transition forms part of Nigeria’s wider decentralisation of the electricity sector under the amended Constitution and the Electricity Act 2023.

Under the new arrangement, Akwa Ibom will assume greater responsibility for regulating electricity activities that take place entirely within the state.

The transition is expected to be completed by 17 February 2027.

For consumers, the development could eventually change where they take complaints, how local electricity operators are regulated and how the state approaches issues such as tariffs, metering, service quality and electricity access.

PHEDC Ordered to Create Akwa Ibom-Focused Subsidiary

One of the immediate consequences of the regulatory transfer concerns the Port Harcourt Electricity Distribution Company, PHEDC.

The company is expected to establish a subsidiary within 60 days to handle electricity supply and distribution activities that fall within Akwa Ibom’s intrastate electricity market.

The proposed subsidiary, described as PHEDC SubCo, will subsequently seek the appropriate licence from AKSERC.

The arrangement could create a more focused distribution structure for Akwa Ibom.

Instead of operating solely within a broader multi-state distribution framework, the state-level subsidiary will operate under a regulatory structure designed specifically around Akwa Ibom’s electricity market.

However, the change does not remove NERC completely from the state’s electricity sector.

The national regulator will continue to oversee interstate and international electricity activities, including aspects of generation, transmission, trading and system operations that extend beyond the boundaries of a single state.

What Changes for Electricity Consumers?

The most immediate potential benefit for consumers lies in regulatory proximity.

Once the transition is fully implemented, residents with complaints relating to intrastate electricity services may increasingly deal with AKSERC rather than a national regulatory institution.

Such complaints could include disputes over billing, delays in metering, estimated bills, service quality and other consumer-protection issues.

The theory behind decentralisation is straightforward.

A regulator located closer to the people and the market it supervises may understand local problems better and respond more quickly.

For consumers who have struggled with unresolved complaints, delayed metering or poor service, the effectiveness of AKSERC could therefore become one of the most important tests of the new arrangement.

A transfer of authority alone will not automatically improve electricity supply.

The commission will need the technical capacity, personnel, enforcement powers and institutional independence required to regulate operators effectively.

Local Regulation, Local Priorities

The new framework also gives Akwa Ibom greater room to shape its electricity market around local conditions.

AKSERC can play a central role in licensing intrastate electricity operators, setting or approving applicable tariffs within its jurisdiction and establishing technical and service standards for the local market.

The state’s electricity policy and legal framework also create opportunities to pursue local generation, renewable energy, mini-grids and rural electrification.

That could prove particularly important in communities that remain underserved by the conventional national-grid system.

Akwa Ibom’s energy resources, including existing power-generation assets such as Ibom Power, could also become more significant within a locally managed electricity strategy.

The broader objective is to encourage investment, competition and innovation while expanding access to reliable electricity.

The Promise & the Challenge of Decentralisation

Supporters of state-level electricity regulation argue that decentralisation can bring decision-making closer to consumers and investors.

A state regulator may identify local infrastructure gaps more quickly.

It may also design rules that reflect the economic realities of its communities.

Yet decentralisation also comes with significant responsibilities.

AKSERC will have to establish itself as a credible regulator capable of balancing the interests of consumers and electricity operators.

Consumers will want affordable and reliable power.

Operators, meanwhile, will require a regulatory environment that allows them to recover legitimate costs and invest in infrastructure.

The state regulator will therefore face the difficult task of protecting consumers without discouraging investment.

A Test for Akwa Ibom’s Electricity Future

The transfer of authority marks an important structural change, but its success will depend on implementation.

The creation of a PHEDC subsidiary, the licensing process, the development of regulatory systems and the handling of consumer complaints will all shape public confidence in the new framework.

For now, the promise is greater local control.

Akwa Ibom can potentially build policies around its own generation resources, underserved communities and infrastructure needs.

It can also develop a more direct relationship between the regulator, electricity providers and consumers.

The real question, however, is whether that new proximity will produce better outcomes.

If AKSERC develops the capacity to regulate independently, enforce standards and protect consumers, the transition could open a new chapter for electricity access and reliability in the state.

If the new structure merely reproduces the weaknesses of the old system at a state level, consumers may see little practical difference.

The handover from NERC to AKSERC has therefore created both an opportunity and a challenge: Akwa Ibom now has greater room to shape its electricity future, but it must also prove that local control can deliver better power-sector results.