NERC Enhances Imo State's Electricity Tariff Regulation

The Nigerian Electricity Regulatory Commission (NERC) has strengthened the capacity of the Imo State Electricity Regulatory Commission (ISERC) to regulate electricity tariffs as part of the Electricity Act (EA), 2023. A two-day training session titled “Tariff Methodology in the Nigerian Electricity Supply Industry” was held, focusing on how state regulators can assess revenue requirements, model tariffs, and determine end-user prices that are financially sustainable and fair to consumers.

The EA 2023 empowers states to establish regulatory authorities for intrastate electricity activities, including licensing and tariff setting. NERC emphasized that a well-designed tariff framework is crucial for attracting investment and ensuring operational cost recovery.

Regina Osuagwu, NERC’s head of International Relations and Stakeholder Secretariat, stated that the commission will continue to support state electricity regulatory commissions through technical assistance and capacity development. The training aimed to balance cost-reflective pricing with consumer protection, addressing the contentious issues of tariff adequacy, service quality, and affordability in Nigeria’s power sector.