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The Nigerian Electricity Regulatory Commission (NERC) has confirmed that it is already working out a model as it embarks on wider stakeholder consultations to enable it effect the much awaited Multi Year Tariff Order (MYTO) early next year.
The regulator says this has become necessary as a way of urgently addressing concerns of technical losses in power distribution to consumers as well as liquidity issues that have been the bane of the power sector value chain of generation, transmission and distribution.
The purpose of the MYTO is to set cost-reflective tariffs that will allow the power sector to be properly funded and functional.
Adequate, cost-reflective electricity supply is seen as the backbone of industrialisation, but has been a major constraint of the NERC, having missed implementation of the policy six times post privatisation, resulting to some liquidity losses put at N1.4 trillion in the sector.
BusinessDay understands that the NERC has commenced the review of Performance Improvement Plans (PIP) to be submitted by the Discos for the tariff period of 2019-2023. This comes as those who know warn that the cost review must be done in a way that poor consumers are not hurt.
“We have embarked on an open-book review with the Discos. The open-book review enables us address concerns of technical losses on distributed power. You can also see that the Meter Asset Provider Regulations is currently ongoing with various Discos embarking on metering consumers. We are also monitoring improvement of collection by Discos, as metering concerns is being addressed,” James Momoh, executive chairman of NERC, told BusinessDay exclusively.
He also confirmed that the Discos had been directed to submit their Performance Improvement Plan, and currently ongoing alongside minor tariff review.
“I can reliably tell you that these processes we are embarking upon … Read More...