Joseph Bakare
The Nigerian Electricity Regulatory Commission (NERC) has asked Electricity Distribution Companies (DisCos) to properly outline their assets and liabilities of successor electricity distribution companies.
The NERC chairman, Sanusi Garba, further emphasised the importance of a transparent and structured approach to asset and liability delineation.
The Agency said it has organised a workshop focused on developing a methodology for the delineation of assets and liabilities of successor electricity distribution companies.
The workshop was part of NERC’s efforts to enhance regulatory clarity and improve the efficiency of the power sector which also brought together key stakeholders, including representatives State Electricity Regulatory Commissions and Bureaus and officials from various DisCos.
Garba, noted that this disclosure was important, particularly in the wake of ongoing reforms aimed at decentralising electricity regulation.
At least four states namely Enugu, Ekiti, Ondo, and Imo have received full electricity regulatory oversight while six states are still in progress.
The Agency said, “The Nigerian Electricity Regulatory Commission has organised a workshop focused on developing a methodology for the delineation of assets and liabilities of successor electricity distribution companies.
“The workshop, held as part of NERC’s efforts to enhance regulatory clarity and improve the efficiency of the power sector.”
It added that the first-panel session addressed the methodologies for delineating DisCos’ assets, focusing on defining ownership structures, valuation methods, and operational boundaries while the second-panel discussion examined the methodologies for delineating DisCos’ liabilities, including financial obligations, outstanding debts, and regulatory compliance requirements.
“The NERC Chairman emphasised 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 provided a platform for collaborative dialogue between NERC, state regulatory bodies and DisCos, reinforcing the need for a harmonized methodology that ensures equitable allocation of assets and liabilities in the evolving electricity market.
“NERC reaffirmed its commitment to fostering a fair and efficient regulatory environment, assuring stakeholders that the outcomes of the workshop would inform future policy directions and implementation strategies in the sector,” the statement concluded.