NERC Uniform System of Account Regulation 2018
Regulation · Energy
Policy date: 2018-01-01
Regulations require electricity licensees to maintain financial records using a standardized chart of accounts. They target power companies and their financial officers for consistent reporting. This ensures transparency in the electricity sector.
NERC Uniform System of Account Regulation 2018
What Is This Policy?
Regulations that require all electricity licensees to maintain financial records using a standardized chart of accounts prescribed by NERC, enabling consistent financial reporting, regulatory analysis, and tariff determination.
Who Does It Target?
All electricity licensees (GenCos, TCN, DisCos, traders) Financial officers and auditors in the electricity sector NERC tariff and finance teams External auditors reviewing licensee accounts
What Does It Aim to Achieve?
Ensure transparency and comparability of financial data across the electricity industry by requiring all licensees to use uniform accounting classifications, enabling NERC to make informed regulatory and tariff decisions.
Key Features
Standardized Chart of Accounts: Prescribed account categories for revenue, expenses, assets, and liabilities Regulatory Reporting: Periodic financial reports using the uniform format submitted to NERC Cost Allocation: Rules for allocating costs across regulated and unregulated activities Audit Requirements: Annual audited financial statements in the prescribed format Tariff Input: Financial data used as inputs for tariff calculations and reviews
Current Status
Rollout Stage: Active Coverage: All electricity licensees Lead Agency: NERC Compliance: Mandatory adoption with NERC monitoring
How to Access
Licensees must adopt the uniform system in their financial record-keeping. Licensees configure their accounting systems to the prescribed chart of accounts Submit periodic regulatory financial reports to NERC
Official Resources
Website: nerc.gov.ng Contact: NERC, Abuja
Legal Framework
The NERC Uniform System of Account Regulations 2018 are issued under the Electricity Act 2023 and the NERC (Establishment) Act. They operate alongside the Financial Reporting Council of Nigeria Act 2011, the Companies and Allied Matters Act 2020 (on financial reporting), and the NERC Determination on Minimum Reporting Requirements. The Regulations align with the Federal Energy Regulatory Commission (FERC) Uniform System of Accounts as an international benchmark for electricity utility accounting.