Follow us on Facebook!   Follow us on Twitter   Follow us on You Tube

Electricity consumers will pay only efficient tariff - NERC

The Chairman of the Nigerian Electricity Regulatory Commission (NERC), Dr Sam Amadi, has said that the Commission will ensure electricity customers pay only an efficient tariff.   

Amadi said this as he gave insight into the removal of technical losses as a component of tariff chargeable by electricity distribution companies while receiving a three-man of delegation of the European Union.   The Commission earlier in the year put collection loss at zero value unless a distribution company make case for its justification.

He said that the Commission questioned the framework that led to huge collection losses passed to electricity consumers and kicked against it because it was against international best practice and encouraged lack of performance on the part of the distribution companies.

‘’We want a transparent, participatory and cost reflective tariff. We have outsourced the tariff making process to the distribution companies and provided them strict guidelines. The regulatory question is about what should be passed to the consumers. 

“One school of thought is legalism and another is about what is right.  So essentially, we ruled out collection losses and put it at zero,’’ Amadi said, adding that electricity distribution companies must consult with the consumers before it can approach the Commission for tariff review.

He informed the visitors that as part of Commission’s drive to enhance electricity supply, it has been advocating embedded generation, which is already yielding fruits.

According to him, ‘’The process of improving power supply lies with embedded generation. For now, Ikeja Electricity Distribution Company is making progress and other distribution companies would soon follow suit.”

Amadi explained that the industry is between 80 and 85 per cent gas dependant but that gas pipeline vandalism has remained a big challenge. He enthused that the East West gas pipeline if completed on schedule by 2016 would open the door for massive gas supply.

According to him, the problem of gas shortage is affecting revenue flow and it if could be resolved the issue of cost reflective tariff would be easily resolved. In his words, “Non-commerciality of gas is a major constraint to gas supply as  some of the generators are unable to sign gas contract that should provide then guaranteed supply’’. 

He concluded that capacity constraint has remained a major challenge at the transmission level but that the completion of some of the 118 projects listed last year by the Transmission Company of Nigeria (TCN) would assist in removing the bottlenecks.

The visiting EU team, whose mission is to investigate how best to assist Nigerians get access to electricity revealed its interest was in the North East as leader of the delegation, David Cameron said, EU has conducted a feasibility study on embedded generation using solar panel in the North East.

Dr. Usman Abba Arabi - Head, Public Affairs Department 

email: This email address is being protected from spambots. You need JavaScript enabled to view it.

           This email address is being protected from spambots. You need JavaScript enabled to view it.  

follow us on@nercng

like us on  and visit our website www.nercng.org

 

NERC laments public misunderstanding of the power industry

Chairman and Chief Executive of Nigerian Electricity Regulatory Commission (NERC) Dr Sam Amadi,  has described as regrettable public misunderstanding of the electricity industry, with people preferring to cast aspersions on the sector without regards cause of hiccups in the value chain of electricity service delivery.

He made the observation when a team of the Federal Radio Corporation of Nigeria, led by the Deputy Director Programs of the FRCN, Mohammed Bawa, received on behalf of their management from  the Commission;  donations of  two desktops  computers for their library.

He said the recent strike action by oil workers that had led to several hangs-outs including shortage of gas to the electricity operators which resulted in drop in electricity supply, which some people just had assumed was as a result of system collapse.

He said ‘’ If people didn’t know what happened, they will assume that the system had collapsed.  The public should separate temporal set-backs about the sector from system collapse’’.

In the light of this, he urged the FRCN officials to continue to be a catalyst on nation development by using the station to educate Nigerians on the sector. According to him, radio remains the most public oriented channel for widespread communication in Nigeria today; hence the Commission is happy to partner the organisation.

Leader of the team, Mohammed Bawa, who applauded the Commission’s gesture, said it knew it was making the right move when it sought the Commission’s assistance for its library upgrade. He said NERC has made its mark as the first and only organisation that has so far responded to its request.

‘’ When we took the decision to upgrade our library, we knew we could not do it alone due to paucity of funds, so we took this initiative to seek your assistance.  We are gratified by your response even though it was on short notice’’ he said.

Both NERC and FRCN have agreed to work together for the development of the economy. 

Dr. Usman Abba Arabi - Head, Public Affairs Department 

email: This email address is being protected from spambots. You need JavaScript enabled to view it.

           This email address is being protected from spambots. You need JavaScript enabled to view it.  

follow us on@nercng

like us on  and visit our website www.nercng.org

NERC organise workshop for appointed technical inspectors

The Chairman of the Nigerian Electricity Regulatory Commission (NERC) Dr Sam Amadi, has said that the Commission is given its technical regulation function the needed impetus.   ‘’Inspection is an important function that clearly defines the work of the regulator’’. Amadi said this at the opening of a workshop for technical inspectors; whose duty is to use their technical capability to inspect industry facilities and advise the Commission appropriately for better regulation of the sector.

He said that there is a line between economic and technical regulation. ‘Certain economic regulation would rely on data obtained from technical regulation’’ stating that the 2001 National Power Policy ascribes the Commission the authority for economic and technical regulations.

The Commission approved the appointment of the Inspectors to provide support in inspections, testing, and certification and accident investigations of electric power infrastructure in the Nigerian Electricity Supply Industry, in line with the provision of the Electric Power Sector Reform Act.

At the workshop, a consultant  with the Engineering Division from the Nigeria Infrastructural Advisory Fund, Engineer Bill Slegg, pointed out as a necessary aspect of the inspectors, to have the right clothing for inspections for credibility purpose. 

Bill outlined the current position of the industry as funding challenge, force majeure and energy availability.  He emphasised the need for collaborative effort to work on a time bounded improvement.

There are ten firm of Inspectors  appointed on 10TH June, 2014. The highlight of the workshop was a clause by clause deliberation on the draft contract between the Commission and the inspectors, which also serves as the TOR.  

 

Dr. Usman Abba Arabi - Head, Public Affairs Department 

email: This email address is being protected from spambots. You need JavaScript enabled to view it.

           This email address is being protected from spambots. You need JavaScript enabled to view it.  

follow us on@nercng

like us on  and visit our website www.nercng.org

 

NERC Sanctions Abuja DISCO - Orders Refund To Overbilled Customers

The Nigerian Electricity Regulatory Commission on Monday ordered that refunds should be made to overbilled customers of the Abuja Electricity Distribution Company (AEDC). This is following earlier Notice of Enforcement and subsequent investigation of instances of overbilling perpetrated by the electricity distribution company.

Read more...

Construction of IPPs Predates NERC

02.06.15 - 17

The ten power plants being constructed by the National Independent Power Plants (NIPP) started way before 2005 when the Nigerian Electricity Regulatory Commission (NERC) was created.

As such the Commission could not have been privy to the economic details of the construction cost of those power plants, some of which are already adding value to the country’s electricity supply industry.

Read more...

NERC explains acute shortage of electricity supply, appeals for calm

25.05.15 - 16
The Nigerian Electricity Regulatory Commission (NERC) has noticed with concern the acute shortage in power supply and the attendant hardship Nigerians are passing through.
In the last couple of months, electricity supply has been generally poor on account of increase in vandalism in the run up to the April 2015 elections. But this bad supply condition has worsened in the last few days.
At present, 18 out of the 23 power plants in the country are unable to generate electricity due shortage of gas supply to the thermal plants with one of the hydro stations faced with water management issue. This has led to loss of over 2,000megawatts in the national grid.

Read more...

Dr Amadi did not travel with President-Elect

22.05.15 - 15

SAHARA REPORTERS GOOF: SAM AMADI DID NOT TRAVEL WITH PRESIDENT-ELECT


The Nigerian Electricity Regulatory Commission's attention has been drawn to a news item on the Sahara Reporters- an online publication where its Chairman, Dr. Sam Amadi was listed as a passenger on a British Airways flight that arrived London Heathrow Airport at 2.15pm on Friday May 21, 2015 from Nigeria.

Read more...

NERC Mulls Ceiling On Estimated Bills To Curb Over Billing of Electricity Customers

18.05.15 - 14

Following barrage of complaints lately received over estimated billings, the Nigerian Electricity Regulatory Commission (NERC) is considering placing a ceiling on maximum amount an electricity distribution company can charge a customer as estimated bill.

Read more...

NERC laments lack of Consumer Advocacy for Electricity Consumers

28.04.15 - 13

‘’One of the observable gaps in the emergent electricity market in Nigeria is the absence of knowledgeable, credible and broad based advocacy for electricity consumers.”

This disclosure was made by the Chairman of the Nigerian Electricity Regulatory Commission (NERC), Dr. Sam Amadi, at an interactive session with members of civil society organisations, representatives of industrial, commercial and residential electricity consumers to consider a concept note on consumer advocacy network in Abuja on Monday, April 27, 2015.

Read more...

NERC believes in the Sanctity of the Privatization Process

14.04.15 - 12

The attention of the Nigerian Electricity Regulatory Commission has been drawn to a publication in the Leadership Newspaper of April 12, 2015 with the caption- "Nigeria: Buhari Can Cancel Power Privatisation- NERC boss", and its attendant spurious interpretations.

Read more...

NERC Clarifies Reduction on Tariff

25.03.15 - 11

The Chairman of the Nigerian Electricity Regulatory Commission (NERC), Dr Sam Amadi on Thursday March 25, 2015 said that industrial, commercial and high end residential electricity customers (R3) are those whose tariff would be reduced as from end of March, 2015.

Read more...

NERC Issues Oma Power 1, 080MW On-Grid License For Power Generation

20.03.15 - 10

The Chairman/Chief Executive of the Nigerian Electricity Regulatory Commission, Dr Sam Amadi on Friday, 20th March, 2015 issued an on-grid 1,080 MW generation licence to Oma Power Generation Company Limited.

Read more...

NERC Reduces Tariff by Removing Collection Losses

17.03.15 - 09

Since January 1, 2015 when the Nigerian Electricity Regulatory Commission (NERC) approved the MYTO 2.1 we have received several complaints against the increase in tariff of different consumer classes. Industrial and commercial consumers under the auspices of the Manufacturers Association of Nigeria (MAN) petitioned the commission asking for a review of the MYTO 2.1 and requested drastic reduction of their tariff. They claimed that such astronomical increase in tariff would kill their business and lead to massive job losses.

Read more...

NERC Panel Rules It Has Jurisdiction To Hear 1004 Estate's Petition

10.03.15 - 08

The Nigerian Electricity Regulatory (NERC) hearing panel on Tuesday March 10, 2015 overruled preliminary objections to a petition brought before it by Mr. Samuel Aremu, who alleged that Mr. Samuel Ukpong and 1004 Estate Limited disconnected him from electricity supply to the estate, even when they are not licensed to trade in electricity. 

Read more...

Manufacturers Association Nigeria (MAN) Appeals For Reversal Of MYTO 2.1

03.03.15 - 07

The Nigerian Electricity Regulatory Commission (NERC) on Wednesday March 3, 2015 has assured manufacturers it will consider those options to ensure that migration from the Multi Year Tariff Order 2 to 2.1 does not undermine any category of electricity consumers in Nigeria.

Read more...

NERC Holds First Electricity Consumer Forum

27.02.15 - 06

The Nigerian Electricity Regulatory Commission (NERC) recently held its maiden national public consultation with electricity consumers comprising households, manufacturers, investors and other stakeholders towards bringing Nigerians abreast with the activities of the Commission regarding tariff setting.

Read more...