Worried by the inability of the 11 distribution companies to distribute power to many consumers, the Nigerian Electricity Regulatory Commission has said it is considering a new regulation to allow third-party investors take up and maintain parts of the vast electricity distribution networks currently owned by the Discos.
NERC added that the franchising arrangement can either be initiated by Discos or customer groups, including communities within a specified geographical boundary that may approach a Disco to allow it take up parts or all of its functions. It also stated that the franchisee shall pay in full the cost of bulk energy to the Disco in line with the terms and conditions of their franchise agreement, and retain a portion of the revenue collected from consumers after deducting amount payable to the Disco.
“However, where distribution franchisee makes investments to provide additional power at a premium cost outside the provisions of the MYTO to cover the supply shortfall, it may attract “surcharge” subject to the commission’s approval in line with relevant rules and regulations,” NERC added. “The franchisee undertakes the rehabilitation and upgrading of the distribution system, as required, by investing its own funds and recover through a project agreement with the distribution licensee,” NERC said.
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Source: Daily Trust - 🏆 13. / 51 Read more »