NERC Exit: Akwa Ibom Begins Power Market Transition, Keeps PHED In Place For Now
By OFFIONG ARCHIBONG
Akwa Ibom Takes Charge of Power Regulation as PHED Transition Begins
AKWA Ibom State has begun the process of taking greater control of its electricity market after the transfer of regulatory oversight from the Nigerian Electricity Regulatory Commission, NERC, to the state regulator.
The Akwa Ibom State Electricity Regulatory Commission, AKSERC, said the transition would run until 17 February 2027.
However, consumers will not see an immediate change in their electricity provider or tariffs.
AKSERC Chairman and Chief Executive Officer, Arit Uya, said the transfer marks the start of a structured transition rather than an instant change in the state’s electricity market.
Consumers Will Continue Dealing with PHED
For the time being, the Port Harcourt Electricity Distribution Company, PHED Plc, remains the electricity provider in Akwa Ibom.
It will continue to supply electricity, meter customers and issue bills throughout the transition.
Customers can also continue using their existing accounts, meters and payment channels.
AKSERC urged consumers to maintain their existing arrangements until the transition produces further changes.
The commission also said customers should continue to send electricity supply, billing and metering complaints to PHED in the first instance.
Tariffs Remain Unchanged
The transfer has also not introduced a new electricity tariff.
AKSERC specifically stated that the NERC order did not alter current electricity prices.
Any future adjustment will require a fresh regulatory process.
That process will include a review of the costs that underpin electricity tariffs and consultations with consumers and other stakeholders.
Therefore, customers should not interpret the regulatory transfer as an immediate tariff increase.
October Deadline for PHED
PHED now faces a major restructuring deadline.
AKSERC requires the distribution company to incorporate a dedicated Akwa Ibom subsidiary by 17 October 2026.
The company must also apply for a state licence to supply and distribute electricity.
Officials will then identify the electricity network serving Akwa Ibom and separate it from PHED’s wider network.
Boundary meters will help establish the points separating the state network from other parts of the distribution system.
PHED must also transfer the assets, liabilities, contracts and employees connected to its Akwa Ibom operations to the new subsidiary.
Full Transfer Comes in February 2027
The transition will not end with the creation of the PHED subsidiary.
AKSERC and NERC must complete the wider transfer of regulatory responsibilities, assets and related obligations by 17 February 2027.
Until then, NERC retains regulatory responsibility for the intrastate electricity market in Akwa Ibom.
AKSERC said the Electricity Act, 2023, makes clear that NERC’s regulatory role ends only after the required transfers are complete.
Once the process concludes, AKSERC will assume responsibility for areas such as end-user tariffs, customer complaints, dispute resolution and consumer protection within the state.
NERC, however, will retain responsibility for interstate and cross-border electricity transactions and matters connected to the national grid.
Akwa Ibom Builds Its Own Electricity Market
The transition reflects Akwa Ibom’s broader effort to establish a sub-national electricity market.
The state enacted its electricity law in 2025 and subsequently created AKSERC.
Governor Umo Eno inaugurated the commission’s pioneer board in June 2026.
With the transfer process now underway, Akwa Ibom is moving towards greater state-level control of electricity regulation.
The immediate challenge will be completing the PHED restructuring, separating the network and transferring the relevant operational responsibilities without disrupting electricity services to consumers.
If the transition stays on schedule, AKSERC will take full regulatory control of the state’s intrastate electricity market after the February 2027 deadline.
