10 September 2018, Sweetcrude, Lagos — The Nigerian Electricity Regulatory Commission, NERC, has explained why it is yet to increase electricity tariffs across the country.
In a communique issued at the end of its meeting with Generation Companies, Gencos on Thursday, the commission said the process is being delayed due to non-availability of meters to electricity customers.
The Commission confirmed that payments were intended to be 100% on the N701b CBN intervention fund but because of the shortfalls which it said had not materialised due to non-increment in tariffs.
NERC then assured GenCos that the Central Bank of Nigeria is also “very anxious” to close transactions on N213b intervention fund, adding the last outstanding Letter of Credit, LC from Kaduna Disco was being expected.
It expressed displeasure at practice by operators instituting legal actions in court rather than abiding by the dispute resolution mechanism put in place by the commission to guide the Nigerian Electricity Supply Industry, NESI.
The issue of fairness with the disbursement of market funds collected by the Discos, the Commission assured Electricity Generating Companies (Gencos) that the entire value chain is essential for the success of the NESI and that structures will be put in place to ensure fairness without compromising principles of the sanctity of contracts.
It was noted that issues surrounding communities receiving free power (host communities) require policy pronouncement rather than regulatory intervention
GenCos reaffirmed their readiness to make sacrifices as they have made in the past but noted the risk posed by the distribution companies, DisCos’ non-remittances.