Abia State Governor, Alex Otti, has overseen the issuance of Interim Electricity Generation and Distribution Licences to three power firms, marking a full transition into an independently regulated intra-state electricity market. The licences were granted by the Abia State Electricity Regulatory Authority (ASERA) in line with Sections 16, 17, 44, and 64 of the Abia State Electricity Law, 2025.
Licence Beneficiaries
The three beneficiaries are New Era Electricity Distribution Limited, APL Electric Company Limited, and Geometric Power Aba Limited. The interim licences were issued following the conclusion of the transition period on 24 December 2025, when ASERA formally assumed full regulatory oversight of intra-state electricity operations. These licences allow the firms to commence regulated activities under ASERA's framework while awaiting full licences.
ASERA Chairman's Remarks
Speaking at the handover ceremony in Umuahia, ASERA Chairman and CEO Mr. Emeka Onyegbule stated that the state government is building a structured, disciplined power sector capable of delivering reliable service at scale. He emphasised that the reform process has moved beyond planning to implementation, noting that electricity is central to economic growth, industrial expansion, and public welfare.
Onyegbule tasked the licensees with strict adherence to licence conditions, transparency in operations, discipline in service delivery, and responsiveness to customers. He warned that regulatory consequences will apply where operators fall short. "This is not ceremonial, it is decisive. We are no longer preparing for reform, we are executing it," he said.
He further explained that the era of regulatory ambiguity is over, with compliance now mandatory. "Where operators perform, they will be supported. Where they fall short, the regulatory consequences will be applied," he emphasised.
Interim Licence Details
Onyegbule clarified that the interim licences are transitional and will last about six months, after which final licences will follow public consultations on regulatory frameworks. He also noted that the state government has advanced negotiations toward concluding a takeover transaction involving the Umuahia Ring Fenced area from the Enugu Electricity Distribution Company (EEDC), which could be finalised before the end of the second quarter.
Commissioner's Perspective
State Commissioner for Power and Public Utilities, Engineer Ikechukwu Monday, described the development as a significant milestone in the ongoing reform of the electricity sector in Abia. Speaking through the Special Adviser to the Governor on Energy, Engineer Kachy Etolue, he said the issuance of interim licences reflects the state government's commitment to translating policy into practical outcomes that drive economic growth and improve quality of life.
"With the enactment of the Abia State Electricity Law, 2025, and the conclusion of the transition period, the state has assumed full responsibility for regulating its electricity market. The success of this initiative will depend on your ability to deliver reliable electricity, uphold regulatory standards, and maintain public confidence," Commissioner Monday stressed.
Regulatory Compliance
ASERA's Executive Director, Legal and Regulatory, Barrister Iguwo Ukwu, outlined strict compliance expectations, emphasising that adherence to regulatory frameworks is mandatory. He highlighted the need for service reliability, transparency in billing, metering, customer engagement, accurate reporting, and robust consumer protection mechanisms. "Customers are at the centre of the electricity market. Licence conditions are binding, and adherence to all reporting, operational, and technical requirements will be closely monitored. Non-compliance will attract appropriate regulatory sanctions," he warned.
Industry Reaction
Speaking with journalists, the Managing Director and CEO of New Era Distribution Limited, Engineer Vincent Ekweku, said the licence issuance marks the beginning of a more structured electricity market. "From today, the regulation goes into full stream, so that Abia State market can be better. You can't just do anything you want anymore because you are regulated," he said, predicting that the market will work seamlessly under strict adherence to regulatory provisions.
