“This to us an with all sincerity of purposes would have help bring money out of the pockets of End users and with a Proviso and Refund of Customers Payments for Fixed Assets of the Utility Companies captured under Refund of Capital Expenditure “
Nigerian Electricity Regulatory Commission have been saddled with the responsibility of providing continuous evaluation of the Cost and Evaluation of Investment by 3rd Party in the Downstream and for 8 years and up till today and the nearest future NERC has found it convenient to put the faith of the process,
So while the remaining 10 Distribution were facing their own challenges, but still seeing progress, Yola Disco was returned to the federal government as a “Department of the Ministry”. For another 6 years, no investor was interested until Quest happened. Industry experts have noted with concern that with the process itself haven taken almost a year to conclude with the Bureau of Public Enterprise and the Labor Union, it is hoped that the Quest Electricity coming on board as new core investors of Yola Disco would bring succor for Nigerians in the North East, and the bravery of QENL to make such investment in the face of hopelessness, would ultimately pay off.
Electricity has thus consistently been sold at a discount, with end-user electricity tariffs much lower than the cost of electricity supplied. The new tariff model as the name indicates is expected to reflect and match the quality of service received by the ultimate consumers of electricity. Distribution companies will therefore discriminate in the application of tariffs; consumers who enjoy longer daily supply will be expected to pay higher rates and vice versa.
Also, Agusto & Co believes adopting scenario analysis and modelling will provide a more robust framework to determine an appropriate tariff structure for the Industry in a dynamic macroeconomic environment such as Nigeria’s. The Merit Dispatching Order should eliminate the shift of responsibility for load rejection prevalent between DisCos and the TCN and improve the technical and operational efficiencies of these operators.
LEADERSHIP WEEKEND reports that from NBET’s N142 billion budget N139 billion is set aside to be paid to Generation Companies GenCos to augment shortfall from remittances from the Distribution Companies, DisCo’s.