Nigerian Electricity Regulatory Commission

Nigerian Electricity Regulatory Commission (NERC) and its functions are listed in this article. We do hope you find it informative.

Nigerian Electricity Regulatory Commission

Nigerian Electricity Regulatory Commission
Nigerian Electricity Regulatory Commission – Photo Source:

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The Nigerian Electricity Regulatory Commission (NERC) Act paved the way for the formation of a new commission called the National Electricity Regulatory Commission which was given the power as a result of the act to take charge of the duties, liabilities, assets, and employees of the defunct National Electric Power Authority.

The commission was also given the right to create an electricity market that would be filled with competition.

Some other rights that the Act gave to the newly established commission were rights to provide licenses and regulations for the generation of electricity, enforcement of standards in the performance of the commission, and determining tariffs to set a standard for consumer rights and obligations.

Upon its establishment, the commission has the legal and constitutional right to sue and be sued, it is also a commission that has a succession plan based on the fact that it is a corporate body. The headquarters of the commission is stationed at the Federal Capital Territory, Abuja.

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Functions of NERC

According to the Act that led to the establishment of the NERC, the Functions of NERC are as follows: 

The commission has the power to establish, promote, and ensure efficient structures in the market and industry and also make sure that there is optimal usage of the resources made available for the provision of electricity services.

1. They increase access to electricity to an optimal level through the act of promoting and facilitating the connection of consumers to the distribution systems both in urban and rural areas.

2. They constantly ensure that consumers if electricity gets adequate electricity.

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3. They strike a balance in electric tariffs to ensure that the prices charged by licenses are customer-friendly and are enough to allow the licensees to finance their activities and create room for considerable earnings to facilitate efficient operation.

4. They ensure safety, reliability, quality of service in the production, and security in the delivery of electricity to the consumers.

5. They are sure that the laid down downregulation is fair and balanced for the licenses, investors, consumers as well as stakeholders in the electricity industry.

6. They present reports to the President and the National Assembly every quarter.

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It is also part of their primary responsibilities to do the following by the Act:

1. They are responsible for promoting competition and participation of the private sector when and where feasible.

2. They establish or as the case may be, approve the appropriate codes of operation and safety, reliability, security, and quality standards.

3. They foster the establishment of approximate consumer rights and responsibilities regarding the provision and use of electrical services.

4. They give licenses to and regulate those persons engaged in the generation, system operation, distribution, transmission, and trading of electricity.

5. They approve the amendment of market rules.

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6. They also monitor the operation of the market for electricity.

7. They carry out any other activities that are vital or convenient for the optimal performance or giving effect to the objects constituted in this commission.

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