How power distribution firms’ spending plan got NERC’s nod + who will spend what
Two major players in electricity Distribution statum of the Nigeria’s power industry, Eko Electricity Distribution Company (EKEDC) and Ikeja Electric, have secured the nod of the Nigerian Electricity Regulatory Commission (NERC) to spend N215.68 billion in the next five years.
NERC, which confirmed this in a document sighted by Platforms Africa, maintained that it approved a 5-year investments plan for upgrades by the two major firms based on outcome of Tariff review consultations, which it carried out in February 2020.
NERC added that it had given approval to Ikeja Electric Plc to invest the sum of N121.92 billion for infrastructure upgrade across its network within a period of five years.
The Commission, which is the regulator of Nigeria’s electricity sector, also approved N93.76 billion for Eko Electricity Distribution Company, EKEDC, to upgrade infrastructure across its network within the same period.
According to the Performance Improvement Plan, PIP, and Extraordinary Tariff Review Application for both DisCos, made available to Platforms Africa, the purpose was to boost power supply and distribution by the Electricity Distribution Companies to their customers.
The commission added the DisCos PIP and Extraordinary tariff review applications were exposed to public hearings and consultations presided over by three commissioners.
According to NERC, the hearings which were conducted in February 2020 is in line with the business rules of the commission and the Regulations on Procedure for Electricity Tariff Reviews in the Nigerian Electricity Supply Industry.
NERC said the approved CAPEX for Ikeja Electric was N24.38 billion annually from 2021 to 2026, making a total of N121.92 billion.
The commission said EKEDC’s approved CAPEX was N18.75 billion annually from 2021 to 2026, which translates to a total sum of N93.76 billion.
NERC said the funds would be invested on initiatives in the distribution network to upgrade existing network capacity, technological enhancements to reduce outages and acquisition of tools to enhance network performance.
The commission said it included installation of metering systems to capture all electrical parameters involved in commercial transactions with the Nigerian Bulk Electricity Trading Company and the Transmission Company of Nigeria.