FIC REPORT (IMO STATE) – The Nigerian Electricity Regulatory Commission (NERC) has trained officials of the Imo State Electricity Regulatory Commission (ISERC) on electricity tariff determination as states assume greater regulatory control over their electricity markets.
The two-day capacity-building programme, themed “Tariff Methodology in the Nigerian Electricity Supply Industry,” bothered on equipping state regulators with the knowledge and skills required to assess revenue needs, develop tariff models and determine prices that balance operators’ financial viability with consumer affordability.
The training follows the implementation of the Electricity Act, 2023, which allows states to establish regulatory bodies to oversee electricity activities within their territories, including licensing, market supervision and tariff regulation. NERC retains oversight of intrastate electricity markets in states that are yet to establish their own regulatory commissions.
Tariff regulation is a critical aspect of the emerging state electricity market structure, as inappropriate pricing could discourage investment, undermine operators’ ability to recover efficient costs or place undue financial pressure on consumers.
According to NERC, the sessions covered the principles and procedures for electricity tariff determination, regulatory, economic and technical considerations, revenue requirement assessment, tariff modelling and the calculation of end-user prices.
Participants also examined approaches to achieving cost-reflective tariffs while protecting consumers from excessive charges, a key challenge in Nigeria’s electricity sector, where affordability, service quality and financial sustainability remain major concerns.
Speaking during the programme, NERC’s Head of International Relations and Stakeholder Secretariat, Mrs. Regina Osuagwu, reaffirmed the commission’s resolve to support state electricity regulatory bodies through technical assistance, capacity development and knowledge sharing.
Mrs. Osuagwu said the initiative was part of broader efforts to strengthen regulatory capacity as states assume increased responsibilities under Nigeria’s evolving electricity market framework.
NERC emphasised that an effective tariff system was essential for attracting investment, recovering operational costs, improving efficiency and enhancing service delivery.
It also noted that well-structured tariffs must ensure the financial sustainability of electricity operators while promoting fairness and safeguarding consumers’ interests.
The training forms part of the commission’s ongoing efforts to equip state regulators with the expertise required to effectively discharge their statutory responsibilities within their respective electricity markets.
CHIOMA AKUSHIE.
HOC. FIC. OWERRI
17/10/2026
