NERC Builds Imo Regulator’s Capacity For Electricity Tariff Oversight

The Nigerian Electricity Regulatory Commission (NERC) has strengthened the capacity of the Imo State Electricity Regulatory Commission (ISERC) to regulate electricity tariffs, as states assume greater responsibility for overseeing power markets under the Electricity Act (EA), 2023.

The two-day training, themed “Tariff Methodology in the Nigerian Electricity Supply Industry,” focused on how state regulators can assess revenue requirements, model tariffs and determine end-user prices that are both financially sustainable and fair to consumers.

The programme comes against the backdrop of the EA 2023, which empowers states to establish regulatory authorities for intrastate electricity activities, including licensing, market oversight and tariff setting. Where a state has not established such an authority, NERC retains regulatory control.

For newly empowered state regulators, tariff methodology is emerging as one of the most consequential areas of regulation. A poorly designed tariff framework could discourage investment or leave operators unable to recover efficient costs; conversely, tariffs that are not properly benchmarked could impose excessive burdens on households and businesses.

NERC said the training covered the principles and framework for tariff-setting in Nigeria, regulatory, economic and technical factors influencing tariff determination, revenue requirement assessment, tariff modelling and the determination of end-user tariffs.

It also addressed how regulators can pursue cost-reflective pricing while safeguarding consumer interests—a balance that has remained contentious in Nigeria’s power sector, where tariff adequacy, service quality and affordability are closely linked.

Speaking at the session, NERC’s head of International Relations and Stakeholder Secretariat, Regina Osuagwu, said the commission would continue to support state electricity regulatory commissions through technical assistance, capacity development and knowledge sharing.

She described the initiative as part of efforts to strengthen regulatory expertise as states take on greater responsibilities under the evolving electricity market structure.

NERC said an effective tariff framework was essential to attracting investment, recovering operational costs, improving efficiency and delivering better services. It added that a well-designed system must balance the financial sustainability of operators with fairness and consumer protection.

The training is part of NERC’s broader support for state regulators as they prepare to discharge statutory responsibilities in their respective electricity markets.