Tag: NERC

Federal High Court sitting in Lagos has restrained Ikeja Electric Plc and Nigerian Electricity Regulatory Commission (NERC) from applying, administering or implementing the purported tariff in April Supplementary Order on Tariff Increase on “Bank A” Feeders.

The court, in a ruling on yesterday, held that the  tariff comprises those published by Ikeja Electric on April 4 and/or May Supplementary Order On Tariff Increase on “Band A” it published on May 6 by a firm, Rida National Plastics Limited.

Justice Chukwujeku Aneke made the injunction after hearing an ex parte application filed by Rida National Plastics’ lawyer, Dr. Kemi Pinheiro (SAN) with F. Giwa Esq and I. Aderibigbe Esq.

The judge ruled that the order subsists pending Ikeja Electric and NERC’s full compliance with Section 51 of Electricity Act, 2023 and hearing and determination of the Motion on Notice.

Read Also: Band A: Court restrains Ikeja Electric, NERC from applying new tariff

Rida Plastics is the plaintiff/applicant while Ikeja Electric and NERC are first and second defendants/respondent in the suit, FHC/L/CS/1051/2024.

Justice Aneke also temporarily restrained the defendants from imposing N20 million on the plaintiff being balance payable on the purported electricity bill dated May 14 calculated on the basis of the April Supplementary Order on Tariff Increase on “Band A” Feeders and/or the May Supplementary Order on Tariff Increase on “Band A”.

The defendants were also stopped “from intimidating and threatening to disconnect or disconnect” Rida’s electricity supply for non-compliance with the purported tariff.

He adjourned till July 9  to hear the motion on notice ‘‘filed contemporaneously with the instant ex-parte application.”

The Federal High Court sitting in Lagos has restrained Ikeja Electric PLC and the Nigerian Electricity Regulatory Commission (NERC) from applying, administering and/or implementing the purported tariff stipulated in the April 2024 Supplementary Order on Tariff Increase On “Bank A” Feeders.

The court, in a ruling on Tuesday, held that the  tarrif comprises those published by Ikeja Electric on April 4, 2024 and/or the May 2024 Supplementary Order On Tariff Increase On “Band A” it published on May 6, 2024 on a firm, Rida National Plastics Limited.

Read Also: Court restrains Ikeja Electric, NERC from applying new tariff on Band A customers

Justice Chukwujeku Aneke made the interim injunction after hearing an ex parte application filed by Rida National Plastics’ lawyer, Dr. Kemi Pinheiro (SAN) with F. Giwa Esq and I. Aderibigbe Esq.

The judge ruled that the order subsists pending Ikeja Electric and NERC’s full compliance with Section 51 of the Electricity Act, 2023 and the hearing and determination of the Motion on Notice for Interlocutory Injunction.

The Federal High Court sitting in Lagos has restrained Ikeja Electric PLC and the Nigerian Electricity Regulatory Commission (NERC) from applying, administering and/or implementing the purported tariff stipulated in the April 2024 Supplementary Order on Tariff Increase On “Bank A” Feeders.

The court, in a ruling on Tuesday, held that the  tariff comprises those published by Ikeja Electric on April 4, 2024 and/or the May 2024 Supplementary Order On Tariff Increase On “Band A” it published on May 6, 2024 on a firm, Rida National Plastics Limited.

Justice Chukwujeku Aneke made the interim injunction after hearing an ex parte application filed by Rida National Plastics’ lawyer, Dr. Kemi Pinheiro (SAN) with F. Giwa Esq and I. Aderibigbe Esq.

The judge ruled that the order subsists pending Ikeja Electric and NERC’s full compliance with Section 51 of the Electricity Act, 2023 and the hearing and determination of the Motion on Notice for Interlocutory Injunction.

Read Also: Ikeja Electric gets 20.5% of NERC’s N21b metering fund

Rida National Plastics is the plaintiff/applicant while Ikeja Electric PLC and NERC are the 1st and 2nd defendants/respondent in the suit marked FHC/L/CS/1051/2024.

Justice Aneke also temporarily restrained the 1st & 2nd defendants from imposing the payment of the sum of N20 million on the plaintiff being the balance payable on the purported electricity bill dated 4th of May 2024 calculated on the basis of the April 2024 Supplementary Order on Tariff Increase on “Band A” Feeders and/or the May 2024 Supplementary Order On Tariff Increase on “Band A”.

In addition, the Interim Injunction also restrained Ikeja Electric and NERC “from intimidating and threatening to disconnect or actually disconnecting” Rida National Plastics’ electricity supply for non-compliance with the purported tariff.

He adjourned the suit till July 9, 2024 “for hearing of the motion on notice filed contemporaneously with the instant ex-parte application.”

The Nigerian Electricity Regulatory Commission (NERC) on Friday, June 21, announced the approval of N21 billion for 11 electricity Distribution Companies (DisCos) to provide meters for end-use customers.

This was contained in its ORDER NO: NERC/2024/072  on The Operationalization of “Tranche A” of the Presidential Metering Initiative Under the Framework of Meter Acquisition Fund.

NERC said: “The Commission hereby approves the use of a sum of NGN21,000,000,000 (twenty one billion Naira only) apportioned pro rata to contribution by the DisCos as Tranche A of the MAF scheme. Attached to this Order as Schedule 1 is a breakdown of the funds available for each DisCo for the purchase of end-use customer meters.”

NERC said it emphatically that the DisCos shall buy and install the meters for customers under the MAF free of charge.

 “All the meters to be procured and installed under the MAF framework shall be at no cost to the customers of the DisCos,” said NERC. 

The order which NERC chairman Engr. Sanusi Garba and Commissioner Legal and signed on 19th January 2024, “shall become effective on 13th June 2024 and may be amended or revoked by subsequent Orders issued by the commission.

NERC had  introduced the Meter Asset Provider {“MAP”) Regulations 2018 and subsequently, the Meter Asset Provider and National Mass Metering [“MAP&NMMR”) Regulations in 2021 to address metering challenges in the Nigerian Electricity Supply Industry (“NESI“). 

The Regulations provided several options for metering end-use customers but the interventions, though significant, have not resulted in the closure of the national metering gap which currently stands in excess of seven million customers. 

The inability of distribution companies (“DisCos”} to raise financing in the form of debt or additional equity was identified as the major constraint in the acquisition and deployment of end-use meters and other capital investments.

The Meter Acquisifion Fund {“MAF”) scheme was therefore developed and approved by the Commission, primarily to address the challenge of DisCo creditworthiness inhibiting the deployment of end-use meter in NES by creating a credible revenue stream from the market funds on the back of which long term financing may be secured by the utilities. 

NERC said the management of Fund Manager (“FM”) based on terms and conditions negotiated by the DisCos and approved by the Commission. 

According to the commission, the Federal Government has approved the Presidential Metering Initiative {“PMI”) with the overarching objective of closing the metering gap in the NES! within three years leveraging on smart metering technologies for data analytics. 

The MAF shall form one of the revenue streams for the repayment of the long tenor financing for metering. 

Continuing, the order revealed that “The Commission approved the deregulation of meter prices under the MAP scheme vide Order NERC/2024/040 to ensure on efficient pricing of meters while responding more quickly to changes in macroeconomic parameters. 

“The Order provides that all prices of meters under the MAP scheme shall be determined through a transparent and competitive bidding process by eligible MAPs. 

“A competitive bidding process was held on 21 May 2024 based on the provisions of Order NERC/2024/040 where a total of 24 (twenty-four)] MAPs participated across the 12 (twelve) DisCos. A total of 44 bids were submitted for 10 (ten) meter specifications.”

NERC said the  deployment of funds under the MAF scheme shall accelerate the deployment of meters and a closure of the current metering gap thereby reducing commercial & collection losses to DisCos, enhancing quality of service and improvement of customer satisfaction. 

It also noted that while the NESI is expected to leverage on the revenue stream under the MAF framework to raise substantial capital funding for metering, there is an imperative to accelerate a closure of the metering gap for all customers currently classified under tariff Band A for the purpose of revenue protection and facilitating demand side management for the affected customers. 

NERC said the DisCos shall utilise the first tranche {“Tranche A”) of disbursement from the MAF scheme based on contributions made by DisCos as at the April 2024 market 

settlement and attached to this Order as Schedule 1, to procure and install meters for unmetered Band ‘A’ customers within their franchise areas. 

Read Also: NERC warns of stiffer penalties for energy theft

DisCos, said the commission, shall, within 14 (fourteen) days from the effective date of this Order, conduct a transparent and compelitive procurement process, for meter price determination, selection and engagement of MAPs/LMMAs for the metering of end-use customer meters under the MAF scheme. 

The order also directed that a report containing details of the process undertaken for the selection of 

MAPs/LMMA:s, including meter price, meter specifications, and the list of customers to be metered shall be sent to the Commission for approval, within 20 (twenty} days from the effective date of this Order. 

It added that upon approval of the Commission, the DisCo shall enter into contracts with selected MAPs/LMMAs on one of the following terms: 

“(i} Where an Advance Payment Guarantee (“APG”) issued by a commercial bank in Nigeria is provided by a qualifying MAP/LMMA, 30% of the contract sum shall be paid by the FM on behalf of the DisCo to the MAP/LMMA upon execution of the contract. A further 2 {two) milestone payments shall be made upon the completion of 60% of contracted quantities and 100% of the contract respectively, with the funds advanced against bank guarantee amortised over the payments. 

“(i} Where the MAP/LMMA do not request an advance payment, the milestone payments shall be made upon the verified installation of 20%, 60% and 100% respectively of the contracted volume of meters. A vendor may, at his option, defer payment until the completion of the installation of the contracted volumes. 

“(i) DisCos shall ensure that all the necessary resources and network clearance required by the MAP/LMMA to install meters based on installation plans are provided and/or completed.” 

The Nigerian Electricity Regulatory Commission (NERC) has announced stricter penalties for energy theft as outlined in the Electricity Act 2023.

According a statement by the regulatory body on its X handle on Thursday, June 6, this warning was conveyed at the Civic Forum on Energy Security organised by the Conference of Civil Societies and Centre for Civil-Military Cooperation (CIMICO) in Abuja on Tuesday.

The forum it said, highlighted the need for collective effort in safeguarding Nigeria’s energy infrastructure.

With key stakeholders from various sectors in attendance, the NERC officials also presented insightful papers at the event.

Read Also: Consumers kick as NERC increases eligible customer criteria

NERC Deputy General Manager, Tariff and Rates, Abba Terab discussed “Electricity Tariff Review: The Issues and the Myths”, addressing the circumstances necessitating the recent tariff reviews.

NERC Assistant General Manager, Government, External and Industry Relations, Michael Faloseyi made a presentation on “Monitoring Performance and Mitigating Energy Theft at the Grass Roots: The Role of Civil Societies”. 

The NERC assistant GM emphasised the causes, consequences, and penalties of electricity theft while calling for increased cooperation with civil societies to combat the menace.

Consumers under the umbrella of the Electricity Consumers Protection Advocacy Center (ECPAC) yesterday condemned the Nigerian Electricity Regulatory Commission (NERC) for raising the Eligible Customer Regulations load requirement from 2Mega Watts (MW) to a minimum of 6MW.

Kicking against the NERC 2024 Eligible Customer Regulations criteria, in a press statement issued to The Nation via WhatsApp, the consumers group said the new regulation, which is difficult to meet, will kill industries, and businesses, and cause economic hardship.

ECPAC, Executive Director, Chief Princewill Okorie, who issued the press statement, sought legislative and executive intervention to save the economy from the regulations.

He said: “NERC 2024 Eligible Customer Regulations criteria will kill industries, businesses and cause economic hardship; the need for legislative and executive action to save Nigeria’s economy.”

He said the 2MW in the 2017Eligible Customers Regulation has been difficult to meet, wondering how to realize the 6MWH, 10MWH, and 20MWH in the 2024 regulation.

Read Also: NERC cuts tariff calculation over forex rate

Okorie said: “Simply put, the 2017 Eligible Customer Regulation was capped at 2Mwh/h over the course of one month, contrary to the 2024 Eligible Customer Regulations which brought in 6Mwh/h, 10Mwh/h and 20Mwh/h.

 “It is important to state that information from experts revealed that most businesses found it difficult to reach the 2Mwh/h threshold for 2017.

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“It was further revealed that experts were advocating for it to be brought down to 1Mwh/h to enable Small and Medium Enterprises who needed Power to meet up.

“Some experts in Power are saying that it will be difficult for any business in Nigeria especially the Small and Medium Enterprises to achieve the 6Mwh/h 10Mwh/h and 20Mwh/h criteria set by NERC.”

Meanwhile, NERC Public Affairs General Manager, Dr. Usman Arabi did not answer the phone call and a WhatsApp message that sought the commission’s response to the story.

Okorie said despite the objectives presented by NERC for Eligible Customer Regulations, it is important to State the need for Eligible customers arose as a result of the inability of Licensed Electricity Distribution Companies to distribute enough Power to service the needs of consumers.

The Executive Director said business operators who need power for productive activities cannot cope with the unreliability and sometimes poor quality of supply by Discos.

He also noted that the business operators also feel that irrespective of the poor, unstable, and inefficient supply, they are overbilled through estimated billing.

Okorie added that there is also the issue of power Generation Companies Complaining that the amount of power distributed by Disco is usually lower than what they generate, resulting in revenue loss.

Continuing, he said: “A situation where 4000megawatts of Power is distributed across the country of over 200 persons with 39,654,385 Micro, Small and Medium, Enterprises, employing 59,647,954, according to SMEDAN shows that the current Power Supply situation cannot meet up with the needs of businesses and residents.

“It therefore becomes necessary to evaluate the justification and rationale for the Eligible Customer Regulation that makes criteria for Eligible Customer to be based on 6Mwh/h for 90days for point to Point connection, 10Mwh/h for 90days for new connection to 33Kv Network, 10Mwh/h for 90days for Existing Disco’s Customer Transitioning to Eligibility, 20Mwh/h over 90days for New Connection to Transmission Network.”

Comparing and contrasting 2017 with 2024 Eligible Customer Regulations criteria he said in the Eligible Customer Regulations of 2017, he said: “The criteria were for end-user customers registered with the Commission for the purpose whose consumption is more than 2Mwh/h over a course of one month that is connected to a metered 11Kv or 33Kv delivery point on the distribution network.

“A customer or group of customers registered with the commission for the purpose that is connected to a metered 11Kv or 33Kvdelivery point.”

Organised Labour has asked the Nigerian Electricity Regulatory Commission (NERC) to reverse the recent hike in electricity tariff. 

Organised labour comprising the Nigeria Labour Congress (NLC) and the Trade Union Congress of Nigeria (TUC) made the demand during the picketing of the headquarters of NERC, Transmission Commission of Nigeria (TCN) and Abuja Electricity Distribution Company (AEDC) in Abuja.

Members of the two labour centers converged at the headquarters of NLC as early as 7am on Monday and proceeded to NERC headquarter for the action with placards inscribed with different protest words.

Some inscribed words in the placards read: “Increase regulatory oversight on DISCOs and GENCOs not tariff Increase on poor and innocent Nigerians”, Let the poor breathe. Give us affordable and constant power,” N228 per kilowatt is killing, reverse it now,” “Electricity tariff Increase, not acceptable,” “We are not a generator republic.”

Recall the Nigerian Electricity Regulatory Commission (NERC) on April 3, 2024, announced the approval of a new electricity tariff for band A customers.

The adjustment was from N68/kwh to N125/kwh.

Delivering the demands of workers to the Chairman of NERC, NLC president, Comrade Joe Ajaero, said that the National Union of Electricity Employees (NUEE) has been directed to order workers in the power sector to cut off power supply to all offices of NERC and TCN nationwide as part of moves to protest the tariff hike.

Ajaero said the present tariff was not workers friendly.

Read Also: Oyo NLC, TUC picket NERC, IBEDC offices Ibadan

He said Nigerians have not received services for the tariff they have been paying. 

Ajaero said: “We are very serious about our demand that NERC and TCN reverse the recent tariff hike. The tariff is killing. It is killing businesses and Nigerians. And as part of our protest, we have asked electricity workers under our centres to cut off power supply in all NERC and TCN offices across the country. Please review the current tariff, it is not workers’ friendly, it is not acceptable.”

A joint message by the two labour centres read: “Workers are hit hardest by the increase in electricity tariff. Unlike business-people, wage earning workers cannot adjust their income when the costs of utilities are increased. This stagnancy in wages amidst increases in electricity and refined petroleum products push workers over and beyond the limits of sanity and survival. 

“Small and medium scale businesses which accommodate millions of workers in the informal economy are severely affected by increases in energy costs. Many of such businesses are forced to shut down thud ballooning Nigeria’s unemployment market. The ancillary cost in crimes and social unrest is a daily living experience on our streets.

“Organised labour in Nigeria is forced to the conclusion that the privatisation of the power sector in Nigeria is a colossal failure. Organised labour in Nigeria demands that the complete reversal of power sector privatisation and the recovery of all public electricity assets sold dirt cheap to largely inexperienced, technically deficit and financially challenged private investors.

“Nigerian workers reject the recent increase in electricity tariff in Nigeria and the associated upgrading and downgrading of customers from one Band to another. It is our clear position that Nigeria after more than sixty years of independence cannot be rationing and rationalising darkness. This is unacceptable.

“We call on Government to respect the terms of the September 2021 Agreement with Labour which was reinforced by a 2023 agreement that government must halt further increase in the tariff of public utilities until certain conditions are met including the review of the privatisation exercise, de-dollarisation of gas supply for electricity generation, distribution of pre-paid meters to all electricity consumers in Nigeria, increase in electricity generation and distribution in Nigeria with adequate commitment to investment in green and renewable energy sources and finally respect the rights of all electricity consumers in Nigeria.?

Reacting to the organised labour message, NERC Chairman, Sanusi Garba said that the Commission has taken note of all the issues NLC and TUC have raised.

He however promised that the issues will be presented and will go back to the drawing board to review them and come up with a better solution.