7 Functions of Nigerian Electricity Regulatory Commission

Here in this post, we are going to bring in detail 7 functions of the Nigerian electricity regulatory commission. We hope you find this post useful.

The Nigerian Electricity Regulatory Commission is a regulatory organization that regulates electricity consumption by the public.

The Nigerian Electricity Regulatory Commission is an independent regulatory body, and was formed by a Reform, known as the 2005 Electric Power Sector Reform Act.

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The Nigerian Electricity Regulatory Commission was actually established for quite some specific functions, and the major of these functions is in the area of undertaking some technical and economic regulation within the Nigerian Electricity Supply Industry.

However, since its formation, the Nigerian Electricity Regulatory Commission, NERC has indeed, recorded significant successes, some of which are the expansion of capacity and network.

The Nigerian Electricity Regulatory Commission achieved this feat by issuing licences for the purpose of generating electricity, transmitting electricity and distributing electricity.

Other areas of achievements of the Nigerian Electricity Regulatory Commission include, developing industry codes and the development of standards, and development of market rules as well as development of a multi-year tariff order.

Quite interestingly, the Nigerian Electricity Regulatory Commission has made several regulations plus some relevant orders that have brought about a stable, as well as, an attractive market for electricity in Nigeria.

However, let us took at other functions of the Nigerian Electricity Regulatory Commission. The Nigerian Electricity Regulatory Commission Headquarters is in Abuja, with zonal offices spread across the six geopolitical zones in Nigeria.

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What Are The Functions Of The Nigerian Electricity Regulatory Commission?

Yes, the Nigerian Electricity Regulatory Commission is saddling with quite a number of functions, as was assigned to it at its inauguration. Having said that, I am obliged to explain quite a number of these functions in this article, nevertheless, below are the functions of the Nigerian Electricity Regulatory Commission:

1. Licenses Operators And Determines Operating Codes

The Nigerian Electricity Regulatory Commission is saddling with a lot of functions in order to make sure that it successfully drives its mandate to an enviable height.

In fact, among other functions, the Nigerian Electricity Regulatory Commission is responsible for the licensing of operators in the country.

It is also the function of the Nigerian Electricity Regulatory Commission to make sure that, it determine the country’s operating code, as well as, country’s operating standards.

More so, it is incumbent on the part of the Nigerian Electricity Regulatory Commission to make sure that it establishes customers’ obligations, and customers’ rights, as well as, set out reflective industry tariffs cost. These and many more remained functions of the Nigerian Electricity Regulatory Commission.

2. Ensures That Market Transactions Are Rule Based

It is the function of the Nigerian Electricity Regulatory Commission to make sure that market transactions are rule based.

The Nigerian Electricity Regulatory Commission has over the years, recorded some achievements in discharging its functions.

This is quite significance because, the Nigerian Electricity Regulatory Commission has ensured that, every market transaction should be rule based.

More so, the Commission has made its regulatory interventions to be preceded by robust engagement of stakeholders and consultative processes for the purpose of making sure that, transparency and fairness and accountability are ensured.

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3. Nigerian Electricity Regulatory Commission Funds Commission’s Activities

Every activity carried out by the Commission is funded by the Nigerian Electricity Regulatory Commission. The Nigerian Electricity Regulatory Commission got its money either through internally generated funds or it got its money from government subvention.

No organization succeeds without funds to run such organization. It therefore, becomes an aspect of the Nigerian Electricity Regulatory Commission to source for funds, adequate enough to aid in financing the activities and functions of the Commission.

4. Nigerian Electricity Regulatory Commission Regulates Standards Of Performance

Yes standards of performance is regulated by the Nigerian Electricity Regulatory Commission. So, for every electricity license, the Commission must regulates standards for performance.

Therefore, it remained the function of the Nigerian Electricity Regulatory Commission to always make sure that, for all the Electricity licenses, it is its responsibility to regulate standards of performance for every one of the electricity licensed.

Its function does not stopped at where the standards of performance has been regulated, it goes beyond this. It is still the function of the Nigerian Electricity Regulatory Commission to monitor these performances for the purpose of ensuring that, everyone of this standard is met and as well, maintained, and if possible exceeded.

5. Nigerian Electricity Regulatory Commission Finances Other Working Groups

The Nigerian Electricity Regulatory Commission actually do generates funds internally, all of these funds are not only used in financing the activities of the Commission alone, the Commission does go as far as, using part of these funds for other purposes.

The regulatory charge of the Commission, which funds the work of the Commission, such as, the monitoring routines and enforcement aspects of the Commission, goes beyond this to fund other activities that have to do with other market groups, and other panels and other committees.

It is through these services that the Commission has achieved the consultative and dispute resolution and rule-making, including protection of the interest of the public, for example, the customers’ rights.

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6. Nigerian Electricity Regulatory Commission Recruits Any Kind Of Employee It Needs

Staff are not being imposed on the Nigerian Electricity Regulatory Commission. The Nigerian Electricity Regulatory Commission has to authority and was empowered to recruit any kind of staff it desires.

Employing staff of its choice, it is therefore, incumbent on the part of the Nigerian Electricity Regulatory Commission to be ready to pay such staff salaries or wages and/or allowances that are considered competitive in the labour market, and salaries should be such that has capacity to retain the staff in the Commission.

And whatever amount of money that is paid to the staff as rewards of his or her services must be such that will incentivise the staff.

7. Nigerian Electricity Regulatory Commission Approves Appropriate Salaries For Staff

There is provision in the Act that establishes the Nigerian Electricity Regulatory Commission, where the Commission is empowered to make sure that it approves appropriate wages for its staff.

I mean appropriate salaries, after the National Salaries, Incomes and Wages Commission had given due consideration and perhaps, made recommendations.

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Conclusion

The Nigerian Electricity Regulatory Commission Headquarters is in Abuja, with zonal offices spread across the six geopolitical zones in Nigeria.

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