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Tag: NERC

  • NERC asks customers to pay for meters

    NERC asks customers to pay for meters

    Against its ealier stance to provide meters free of charge, the Nigerian Electricity Regulatory Commission (NERC) yesterday asked willing customers to pay to Distribution Companies (DISCOs) after which a meter will be given to them within 45 days.

    NERC Chairman Dr. Sam Amadi, who said this in Abuja, explained that in exchange for the payment, “the DISCOs will in turn reduce the customers’ electricity bills monthly to the tune of the amount originally advanced by the customer.”

    He said the Commission may accredit meter vendors to supply and install the meters directly to customers, adding that NERC will work out the modalities for the payment.

    This decision followed the companies’ slow implementation of the 18-month timeline for metering deployment plan set by NERC at the commencement of the Multi Year Tariff Order (MYTO2) in June, last year.

    The tariff made allowance for sufficient funds to provide meters so that customers were no longer required to pay for the facility.

    But Amadi explained that the 18-month metering plan was based on the assumption that with financial viability, the process would improve after MYTO 2.

    “Unfortunately, the negotiation between labour and the Federal Government has resulted in increased personnel cost by 50 per cent. The impact is that the operational cost of the DISCOs increased significantly. So the DISCOs have not been able to utilise increment in collection arising from tariff review to focus on metering.”

    He said the Commission would hold a public hearing for SMEs and other stakeholders to arrive at a more affordable fixed charge to ensure sustenance of the sector.

    “The Board of the Commissioners also reviewed the requests made by some electricity distribution companies to unbundle customers classes (R2 and R3), a development that will see to customers in the R2 category, who are mostly low-income working class customers paying less for electricity without undermining the capacity of the operators to recover their costs.

    He said NERC has requested for an imposition of Kilo Volt Amp (KVA) charges to users of heavy industrial machinery that are known to cause stress to the system, adding that the charge would serve as a deterrent to such customers and compel them to install capacitor baks that will be used to reduce the impact.

    The Commission also revealed that it received a request from Nigerian Bulk Electricity Trading Plc (Bulk Trader) to grant a special permit to the 450 megawatt Azura- Edo power plant located in Ihovbor Benin, Edo State.

    Amadi explained that the permit is in respect of a site specific wholesale gas price that is higher than the official price to enable it complete it’s financial transactions and commence construction of the plant.

    While accepting that the power plant is important in terms of wholesale, he stressed that the commission has resolved that a decision will be taken after a public hearing with the stakeholders such as the Nigerian National Petroleum Corporation , DISCOs, electricity consumers and others.

    On metering plans, he said: “I also like to inform you that we have received concerns about slow deployment of meters. As you know, NERC had indicated metering the nation in 18 months based on the assumption on how the financial viability would improve after MYTO II.

     

     

     

     

     

     

  • NERC chair appointed GEI board member

    The Chairman/Chief Executive Officer of the Nigerian Electricity Regulatory Commission (NERC), Dr.

    Sam Amadi, has been appointed a member of the Industry Leader Advisory Board of the Global Electricity Initiatives (GEI).

    The GEI is a joint initiative of the World Energy Council (WEC), the World Business Council on Sustainable Development (WBCSD) and the Global Sustainable Electricity Partnership (GSEP).

    GEI was established in Durban South Africa during COP 17.

    The advisory council is responsible for general guidance during the development and implementation of the initiative, for the provision of industry insights and promotion of the results.

    GEI membership will provide the Chairman of NERC a veritable platform to make the case for the much-needed international support of the fledgling Nigerian Electricity Supply Industry (NESI).

  • NERC to review electricity tariff soon

    NERC to review electricity tariff soon

    The Nigeria Electricity Regulatory Commission (NERC) will soon review the Multi-Year Tariff Order, which came into force on June 1.

    The proposed review followed complaints by electricity consumers, including Small and Medium Enterprises (SMEs), about the N500 fixed fee they must pay monthly.

    Commissioner of Government and Consumer Affairs Abba Ibrahim said the commission has set up a process to resolve the complaints of the SMEs.

    He said the new tariff regime provided for a review mechanism in case of such complaints.

    Ibrahim insisted that the distribution companies must provide meters to all customers in the next 13 months as ordered by the regulatory agency in June.

    “We have had complaints from commercial operators; specifically, Small and Medium Enterprises, complaining about high fixed charges, equivalent to industrial categories.

    “It is a complaint that was laid and met these criteria for a review within 60 days of the MYTO order.

    “We are now in the fifth month of the implementation of the tariff.”

    He added: “These complaints were made within the 60 days of implementation and we have sat down with all the stakeholders.

    “My chairman, Dr. Sam Amadi, is meeting with the National Association of Small and Medium Enterprises on this issue as we speak.

    “We have consulted with the distribution companies. We have met severally and we are in the process of addressing this issue.

    “So it is a review that is being taken care of. It is unfortunate that a group has suffered this long but I can assure you we are putting all efforts to ensure that this is redressed.”

  • NERC begins training for electricity workers

    The National Electricity Regulation Commission (NERC) has begun a compulsory training programme for management staff of electricity companies in the country.

    The “PHCN Management Orientation by NERC” took off in Kaduna. The Managing Director, Kaduna Electricity Distribution Company, Mallam Idris Mohammed said the retreat was aimed at appraising the power sector in the country.

    He said input from the event would add value to the ongoing reform in the power sector. “For the reform to be achieved we need to brace up ourselves with adequate information on how to move the electricity companies forward.

    “As operators of the electricity system, we need to discuss and evolve best strategies and practices that would improve power supply in Nigeria.” The managing director said the retreat would also review the existing market structure to ensure optimal utilisation of resources in the provision of electricity.

    He urged the participants to make useful contributions that would have positive impact on the industry. Also speaking, Mr Samuel Omelo, an Assistant General Manager of the company, described the training as timely. He said the industry has become dynamic and challenging, adding: “this is the time to look at our past and proffer solution to the numerous challenges ahead”.

    Mr Baba Limmy-Omar, the Assistant General Manager, Public Affairs, told The Nation at retreat that the NERC has developed guidelines and regulations to govern bulk electricity generation and procurement. “This framework establishes a systematic, transparent and competitive process for procuring additional electric generation capacity at least cost to consumers,” he said.

  • NERC blames lack of cost-effective tariff on PHCN

    NERC blames lack of cost-effective tariff on PHCN

    The Nigerian Electricity Regulatory Commission (NERC), yesterday blamed the absence of cost-reflective tariff in the Nigeria’s Electricity Supply Industry (NESI) on poor consumer service delivery practices amongst distribution companies of the Power Holding Company of Nigeria (PHCN) .

    The Chairman, Dr. Sam Amadi, who made this disclosure in Abuja during the flag-off week-long twinning programme between the Commission and United States National Association of Regulatory Commissioners (NARUC), said utilities service provided in the sector are characterised by poor customer service delivery practices that have resulted in poor customer service delivery practices.

    Utilities in the sector contributed to existing harmful issues militating against the growth in the power sector of the country.

    Amadi said: “One of the real crisis of this sector is lack of customer-centric by utilities. We have received several reports, people are not happy with the tariff, not because it is high, but they are yet to enjoy good service delivery.

    They are complaining about bad billing system even though we have rolled out a methodology to sanitise estimated billing, but the billing is still going on and people are complaining.”

    While admitting that it is better to privatise the power sector, he said it is necessary to develop the capacity to regulate the level of customer service.

    His words: “For us, it is good to privatise and we are happy to be where we are now, but then, you have to prepare to develop capacity to regulate especially at the level of customer service

    “We have had this for a while now and it happens every year. But this year, we are focusing on thematic areas, we want to identify the areas where we have gaps as a regulator and close up on them through the wealth of experience that we can gain from the Michigan Public Service Commission, which is about 100 years old in operation.

    “We are trying to become a world-class regulator and we can only do that by learning from people that have been there for this long.”

    Amadi disclosed that the twinning programme is in its eight edition and it is designed as a vehicle for the exchange of regulatory experience and information between NERC and NARUC.

    He said the officials are expected to share experiences that would further NERC’s institutional and decision-making capacities as regards market-based regulation.