NERC Concludes Extraordinary Tariff Review Of DisCos 

Yemisi Izuora

The Nigeria Electricity Regulatory Commission, NERC, on Monday said it was in the process of concluding the Extraordinary Tariff Review process for the 11 Electricity Distribution Companies (DisCos).

The reviews, the Commission said, would put into consideration changes in inflation, foreign exchange, gas prices and available generation capacity.

It stated that most of these had been on an upward climb, while generation capacity was not known to have improved substantially.

The agency said it would also consider Capital Expenditure (CAPEX) required to evacuate and distribute the said available generation capacity in accordance with Electric Power Sector Reform Act, EPSRA, and other extant industry rules.

In a notice to the general public and industry stakeholders posted on its website, the Commission said the review was pursuant to the provisions of the EPSRA.

“Extraordinary tariff reviews are carried out in instances where industry parameters have changed from those used in the operating tariffs to such an extent that a review is urgently required to maintain the viability of the industry,” NERC said.

The commission has also indicated its plans to commence the processes for the July 2021 Minor Review of the Multi-Year Tariff Order (MYTO-2020), which is done every six months.

“Further to the above, the Commission held a series of public hearings and stakeholder consultations in the first quarter of 2020 on the Extraordinary Tariff Review Applications of the 11 DisCos to consider their respective five-year Performance Improvement Plans (PIPs).

“However, the evaluation of the DisCos’ requests for review of the CAPEX proposed in their PIPs could not be concluded for the consideration of the commission during the Minor Reviews undertaken in 2020.

“Specifically, Section 21 of the MYTO – 2020 Order provides for consideration of DisCos’ CAPEX application upon further scrutiny and evaluation of the investment proposals.” the information stated.

NERC said the notice was being issued in compliance with the provisions of EPSRA, the Business Rules of the commission and the Regulations on Procedures for Electricity Tariff Reviews in the Nigerian Electricity Supply Industry.

The Commission said it was aimed at soliciting for comments from the general public and stakeholders on the proposed reviews and advised them to send their comments to NERC’s headquarters in Abuja within the next 21 days.

Add Comment