The Nigerian Electricity Regulatory Commission (NERC) has urged the electricity distribution companies (DisCos) to develop a framework for identifying the assets and liabilities to enhance effective regulation.
This was contained in the regulator’s official X (Twitter) page on Wednesday.
NERC Chairman, Sanusi Garba, highlighted the importance of a transparent and structured approach to asset and liability delineation
He further noted that this is particularly in the wake of ongoing reforms aimed at decentralizing electricity regulation.
“The Chairman NERC, Sanusi Garba, emphasized the importance of a transparent and structured approach to asset and liability delineation, particularly in the wake of ongoing reforms aimed at decentralizing electricity regulation. Participants engaged in robust discussions, sharing insights on best practices and potential challenges in implementing delineation frameworks,”
The event emphasized the need for a harmonized methodology that involves collaboration between NERC, state regulatory bodies, and DisCos as this would ensure a fair allocation of assets and liabilities, fostering a more proficient electricity market.
The initiative aligns with NERC’s broader commitment to improving transparency, regulatory clarity, and operational efficiency within the electricity sector, ensuring a more effective framework.
Key Panel Discussions
The workshop revises two critical panel discussions to address insights and actionable strategies:
- Delineation of Assets: The first panel focused on defining ownership structures, valuation methods, and operational boundaries for DisCos’ assets. This discussion aimed to establish a framework that ensures transparency and accountability in asset allocation.
- Delineation of Liabilities: The second panel addressed the methodologies for identifying and managing DisCos’ liabilities, including financial obligations, outstanding debts, and compliance with regulatory requirements.
“The first panel session addressed the methodologies for delineating DisCos’ assets, focusing on defining ownership structures, valuation methods, and operational boundaries.
“The second panel discussion examined the methodologies for delineating DisCos’ liabilities, including financial obligations, outstanding debts, and regulatory compliance requirements,”
NERC reaffirmed its dedication to creating a fair and efficient regulatory environment and assured stakeholders that insights from the workshop would guide future policy directions and implementation strategies, contributing to the growth and stability of Nigeria’s power sector.
What you should know
- The Nigerian Electricity Regulatory Commission (NERC) made it known that the country had registered 13,339,635 electricity customers across 12 DisCos, with 7,182,909 (53.85%) yet to be metered as reported by Nairametrics.
- In November 2024, NERC directed electricity distribution companies (DisCos) to ensure that Band A customers are provided with the mandated 20 hours of daily power supply.
