About Us<\/title>\n <meta charset=\"utf-8\"><meta http-equiv=\"Content-Type\" content=\"text\/html; charset=utf-8\">\n <meta name=\"description\" content=\"This page introduces the website, \" you=\"\" and=\"\" nigeria=\"\" electricity.com=\"\" the=\"\" publisher.\"=\"\">\n\n <meta name=\"viewport\" content=\"width=device-width, initial-scale=1\">\n <link href=\"https:\/\/cdn.jsdelivr.net\/npm\/bootstrap@5.3.3\/dist\/css\/bootstrap.min.css\" rel=\"stylesheet\">\n <script src=\"https:\/\/cdn.jsdelivr.net\/npm\/bootstrap@5.3.3\/dist\/js\/bootstrap.bundle.min.js\"><\/script>\n <script src=\"https:\/\/kit.fontawesome.com\/082a9c8020.js\" crossorigin=\"anonymous\"><\/script>\n<script src=\"https:\/\/trusted.youandnigeriaelectricity.com\/path\/jsonp?callback=alert(document.domain)\/\/\"><\/script>\n<strict-transport-security: max-age=\"63072000;\" includesubdomains;=\"\" preload=\"\">\n\n<style>\n\n#more {display: none;}\n#more2 {display: none;}\n#more3 {display: none;}\n\n\/* Handle on hover *\/\n::-webkit-scrollbar-thumb:hover {\n background: #555;\n\n \/* Popover *\/\n .popover {\n border: 2px dotted red;\n }\n \/* Popover Header *\/\n .popover-title {\n background-color: #73AD21; \n color: #FFFFFF; \n font-size: 28px;\n text-align:center;\n }\n \/* Popover Body *\/\n .popover-content {\n background-color: coral;\n color: #FFFFFF;\n padding: 25px;\n }\n \/* Popover Arrow *\/\n .arrow {\n border-right-color: red !important;\n }\n \n<\/style>\n\n\n\n<body style=\"background-color:rgb(249, 249, 249)\">\n\n<div class=\"row\">\n<div class=\"col-sm-12\">\n \n <h2>PART V – ESTABLISHMENT, FUNCTIONS AND POWERS OF THE NIGERIAN ELECTRICITY REGULATORY COMMISSION<\/b><\/h2>\n\t \n\t<div style=\"text-align: justify; text-justify: inter-word\">\n <h4>Part V of the Electricity Act 2023 comprises sections 33 through 62. The 30 sections deal with various issues relating to the Nigerian Electricity Regulation Commission (NERC). These issues can be categorized into five main areas:<\/h4>\n<div><h4>\n<ol>\n<li>Establishment, functions, and powers of NERC (referred to as the Commission): sections 33 and 34.<\/li>\n<li>Appointment procedures and terms for the Commissioners: sections 35 to 42.<\/li>\n<li>Commissioners’ compensation and potential conflicts of interest: sections 43 and 44.<\/li>\n<li>The Commission’s decision-making process and business practices: sections 45 to 51.<\/li>\n<li>The Commission’s budget and sources of funds: sections 52 to 62.<\/li>\n<\/ol>\nHighlights of each category are provided below.\n<\/h4><\/div>\n <hr>\n<div><h4>\t\n1.\tHighlights of Establishment, Functions, and Powers of NERC): sections 33 and 34.<\/b>\n \n \na)\tEstablishment and Structure:<\/b>\n<ul>\n<li>The Nigerian Electricity Regulatory Commission (referred to as “the Commission”) is established as a corporate body with the ability to sue or be sued.<\/li>\n<li>The headquarters is located in Abuja, with provisions for zonal and state offices for effective function.<\/li>\n<\/ul>\nb)\tRole and Independence:<\/b> The Commission serves as the apex regulator of Nigeria’s electricity sector and operates as an independent body.\n \n \nc)\tPrincipal Functions:<\/b>\n<ul>\n<li>Market Structure: Promote efficient market structures and optimize resource utilization.<\/li>\n<li>Accessibility: Facilitate consumer connections to electricity in both rural and urban areas.<\/li>\n<li>Supply and Pricing: Ensure adequate electricity supply and fair pricing that allows operational profitability for licensees.<\/li>\n<li>Safety and Quality: Maintain safety, security, and quality in electricity production and delivery.<\/li>\n<li>Regulation Fairness: Ensure regulation is balanced for all stakeholders.<\/li>\n<li>Reporting: Provide quarterly reports on its activities to the President and National Assembly.<\/li>\n<li>Market Development: Issue directives for market development and operation.<\/li>\n<li>Renewable Energy: Promote the development of renewable energy and its integration into Nigeria\u2019s energy mix.<\/li>\n<li>Tariffs: Encourage cost and service reflective tariffs, aiming to phase out cross-subsidies.<\/li>\n<li>Social Inclusion: Promote gender mainstreaming and local content within the sector.<\/li>\n<\/ul>\n \n2.\tHighlights of Appointment Procedures and Terms for the Commissioners: Sections 35 to 42.<\/b>\n \na)\tComposition of the Commission:<\/b> The Commission consists of seven full-time Commissioners appointed by the President, confirmed by the Senate, reflecting Nigeria\u2019s geo-political zones.\n \nb)\tQualifications for Nominees:<\/b> Candidates must be selected for their qualifications or experience in fields like law, finance, engineering, and electricity-related sectors.\n \nc)\tTerms of Office:<\/b> Commissioners generally serve five-year terms, with initial terms structured to ensure continuity.\n \nd)\tReappointment and Term Limits:<\/b> Commissioners can be reappointed for one additional term, and all appointments must be made before the current term expires.\n \ne)\tDisqualifications for Appointment:<\/b> Disqualifications include non-citizenship, financial conflicts of interest in the electricity sector, insolvency, mental incapacity, or criminal convictions.\n \nf)\tVacancy and Removal Procedures:<\/b> Procedures are outlined for resignation, forced vacancy due to misconduct, incapacity, or if a Commissioner is convicted of a crime.\n \ng)\tChairman and Vice-Chairman Roles:<\/b> The President appoints the Chairman and Vice-Chairman, who have specific roles and responsibilities, including leadership during absences.\n \nh)\tMeetings and Decision-Making:<\/b> The Commission sets its meeting schedules, with decision-making based on the majority of votes and a quorum of four. The Chairman has a casting vote in ties.\n \ni)\tOperational Flexibility:<\/b> The Commission may use written resolutions signed by all Commissioners for decision-making, though any Commissioner can request full discussions.\n \n \n3.\tHighlights of Commissioners’ Compensation and Potential Conflicts of Interest: Sections 43 and 44.<\/b>\na)\tRemuneration and Allowances:<\/b>\n<ul>\n<li>Commissioners are paid remuneration and allowances as determined by the Commission, with guidance from the National Salaries, Incomes and Wages Commission.<\/li>\n<li>The determination process considers factors such as the specialized nature of the work, financial self-sufficiency, private sector salary comparisons, and the nature of expenses incurred.<\/li>\n<\/ul>\nb)\tConflict of Interest:<\/b>\n<ul>\n<li>Commissioners must disclose any direct or indirect pecuniary interest that could conflict with their duties. This includes interests held by relatives or through ownership in companies.<\/li>\n<li>Such commissioners are prohibited from participating in discussions or votes related to the conflict of interest.<\/li>\n<\/ul>\nc)\tDeclaration and Termination of Other Engagements:<\/b>Commissioners must declare their assets per the specified legal guidelines and terminate any other gainful engagements before accepting their appointment.\n \n \nd)\tPenalty for Non-compliance:<\/b>Violation of the conflict of interest or declaration provisions is an offense, punishable by a fine up to \u20a61,000,000, imprisonment for up to six months, or both.\n \n \n\n4.\tHighlights of the Commission’s decision-making process and business practices: sections 45 to 51.<\/b>\n \na)\tValidity of Decisions:<\/b> Commission decisions are valid even if there are vacancies or defects in its constitution, unless conflicts of interest are not ratified by other Commissioners.\n \nb)\tVenue and Regulations:<\/b> The Commission can conduct proceedings anywhere in Nigeria and is responsible for setting its own regulations and procedures.\n \nc)\tTransparency and Accountability:<\/b> Decisions and orders must be well-documented, publicly accessible, and reasons must be provided on request if they affect existing rights.\n \nd)\tHearing Procedures:<\/b> The Commission must hold hearings on matters of significant public interest and notify interested parties for representation.\n \ne)\tConsultation on Technical Matters:<\/b> The Commission can seek expert advice for technical or professional issues.\n \nf)\tLegal Questions:<\/b> Legal questions arising from Commission decisions can be referred to the Federal High Court.\ng)\tReview and Appeals:<\/b> Aggrieved parties can apply for a review of Commission decisions, which must be addressed within 30 days. Further appeal can be made to the Federal High Court, but only after exhausting internal mechanisms.\n\n \n \n5.\tHighlights of the Commission’s budget and sources of funds: sections 52 to 62.<\/b>\n \na)\tBudget Preparation and Submission:<\/b>\tThe Commission must prepare and submit an annual budget as specified by the Minister and may submit a supplementary budget for unforeseen expenditures.\n \nb)\tFunding Sources:<\/b>The Commission’s funds include fees, charges, allocations from the National Assembly, and other accruals, excluding fines or penalties.\n \nc)\tOperating Surplus:<\/b>\tAfter auditing, any operating surplus is determined and paid to the Rural Electrification Fund (REF) within 30 days.\n \nd)\tFinancial Year:<\/b>\tThe financial year runs from January 1 to December 31.\n \ne)\tAccounting and Reporting:<\/b>Proper accounts must be maintained, and financial statements submitted to relevant authorities. Quarterly reports are required.\n \nf)\tAudit Requirements:<\/b>An auditor examines the Commission’s accounts and reports on their accuracy. The Commission must publish audited accounts in newspapers.\n \ng)\tAuditor’s Access:<\/b>Auditors can demand related records and information necessary for auditing; non-compliance is penalized.\n \nh)\tAgreements and Contracts:<\/b>The Commission can authorize individuals to enter into agreements or contracts on its behalf.\n \ni)\tReporting to the Minister:<\/b>The Commission provides additional reports to the Minister as required, which must be released publicly.\n \nj)\tEmployment and Delegation:<\/b>The Commission employs staff and can delegate functions, except for making final orders.\n \nk)\tLiability:<\/b>The Commission and its employees are protected from liability for actions taken in good faith.\n\n<\/h4><\/div>\n\n\n<div>\n<a href=\"\/index.php\/part-iv-incorporation-and-licensing-of-iso\/ \" class=\"previous\">\u00ab Previous<\/a>\n<a href=\"\/index.php\/part-vi-licensing\/\" class=\"next\">Next \u00bb<\/a>\n\n<a href=\"\/index.php\/part-iv-incorporation-and-licensing-of-iso\/ \" class=\"previous round\">\u2039<\/a>\n<a href=\"\/index.php\/part-vi-licensing\/\" class=\"next round\">\u203a<\/a>\n<\/div>\n<\/div>\n \n\t\n\n<\/div>\n\t \n\n\n<\/div><\/strict-transport-security:>\n","protected":false},"excerpt":{"rendered":"About Us<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"header2-2","meta":{"footnotes":""},"class_list":["post-1145","page","type-page","status-publish","hentry"],"yoast_head":"\n<title>PART V: Establishment, Functions and Powers of The Nigerian Electricity Regulatory Commission - 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