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Tag: NERC

  • NERC begins shutting down offices in States

    NERC begins shutting down offices in States

    The Nigerian Electricity Regulatory Commission (NERC) has announced that it was shutting down its forum offices in some States in the country and handing over their operations to the respective electricity commissions of the affected States.

    The commission noted that it had officially transferred regulatory authority to Enugu, Ekiti, Kogi, Edo, Ondo, Imo and Oyo States in accordance with the new Electricity Act 2023.

    As a result, the newly established State Electricity Regulatory Commissions (SERCs) in those states, will now oversee all aspects of electricity regulation.

    Consequently, NERC said it closed its forum offices in Enugu and Ekiti states on October 22, while its Imo office will be shut down on December 31.

    Its Oyo office will close on February 5, 2025; Edo on February 20, while Kogi office will be shut by March 12 next year.

    “Customers in these states are encouraged to direct any electricity-related complaints to their respective SERCs moving forward.

    “NERC extends its best wishes to the new SERCs as they embark on the important task of establishing effective regulation in their states,” an official statement by NERC reads.

  • Stakeholders seek end to incessant national grid collapse

    Stakeholders seek end to incessant national grid collapse

    The Nigerian Electricity Regulatory Commission (NERC) on Thursday conveyed a public hearing with stakeholders converging to recommend ways to address power system disturbances.

    In his address, the NERC Chairman, Sanusi Garba said NERC considers what has been happening as significant public interest and provided a platform to discuss ways to tackle them. There have been multiple system disturbances that have caused widespread outages in parts of the country.

    “Today we are here, and the Commission intends to take a deep dive to find a solution to this. The reality is that what is happening to the national grid is affecting the generation companies and the distribution companies and also impact the quality of supply to manufacturers and residential customers.”

    Representative of the Transmission Company of Nigeria (TCN) and Executive Director, System Operation, Engr. Nafisat Ali, in a presentation said two recent incidences caused wide outage due to equipment failure.

    “Challenges in the value chain must be holistically addressed to resolve the disturbances while cooperation of all stakeholders is a must for a largely manually operated grid,” she stated as part of the strategies to tackle the issues.

    There were remarks from representatives of the generation companies, distribution companies and intervenors from the private sector suggesting concerted efforts to address obsolete equipment, transitioning to a smart grid and addressing attitudinal issues hindering optimal grid operation.

  • NERC to hold public hearing on incessant grid collapses

    NERC to hold public hearing on incessant grid collapses

    The Nigerian Electricity Regulatory Commission (NERC), on Saturday announced its plans to conduct a public investigation into the incessant grid collapses that have led to widespread power outages across the country.

    NERC’s decision follows the latest grid collapse which marked the third incident in one week.

    Expressing concern, NERC in a statement posted on its official X handle noted that the disturbances threaten to reverse recent advancements in grid stability and infrastructure improvements.

    It stated that while efforts to restore electricity have made significant progress, power was largely restored by 1 PM in 33 states and the Federal Capital Territory.

    “In line with the provisions of the Electricity Act 2023, NERC is in the process of unbundling the System Operator function from the Transmission Company of Nigeria Plc. This move aims to foster better grid management and attract optimized investments in infrastructure.

    “The forthcoming public hearing will seek to uncover both immediate and underlying causes of the recurring grid disturbances. Details regarding the date and venue of the hearing will be published soon in national dailies, and all stakeholders are encouraged to participate in this critical dialogue”, NERC stated.

    Meanwhile, the Transmission Company of Nigeria (TCN) in a statement issued by its General Manager, Public Affairs, Ndidi Mbah, said that the latest grid disturbance was caused by the explosion at Jebba Transmission Station.

    TCN said, “The Transmission Company of Nigeria hereby states that the national grid experienced a temporary disturbance at about 8:15 am, today, 19th Oct. 2024.

    “According to the report from the NCC, the bus section of a current transformer exploded at 330kV Jebba Transmission Substation and as expected, the protection system was activated, and this promptly opened the busbars to curtail the explosion, thereby preventing the outbreak of fire and further damage to adjacent equipment.

    “The action of the protection system led to a temporary disturbance on the grid.
    Our engineers at Jebba have successfully carried out switchings, isolating the faulty current transformer.

    “They have equally reconfigured the busbar arrangement, restoring power supply to the station, and other parts of the grid.”

  • DisCos rake in N431.16bn revenue for Q2 2024

    DisCos rake in N431.16bn revenue for Q2 2024

    The Nigerian Electricity Regulatory Commission (NERC) says the total revenue collected by all  Electricity Distribution Companies (DisCos)  in quarter two hit N431.16 billion.

    The commission made this known on its Website in its second quarter 2024 report in Abuja on Thursday.

    The report said that the N431.16 billion collected was out of the N543.64 billion that was billed  customers, adding that this translated to a collection efficiency of 79.31 per cent.

    It said in comparison to the total revenue collected by all DisCos in quarter 1 which was N291.62 billion out of the N368.65 billion billed customers which translated to 79.11 per cent collection efficiency.

    The report showed that Ikeja and Eko DisCos recorded the highest collection efficiencies of 94.67 per cent and 88.03 per cent respectively.

    ” Yola DisCo recorded the lowest collection efficiency of 55.67 per cent

    “A comparison of DisCos performance in Q1 and Q2 showed that six  DisCos recorded improvements in collection efficiency, ‘’ it said.

    The report also showed that the commission issued 18 licences, permits and certifications in the quarter under review.

    It said these included: five  new off-grid generation licences with a total nameplate capacity of 12.36 Megawatts (MW).

    “Two on-grid generation licences with a gross capacity of 66MW, one new electricity trading licence, one system operator licence.

    “One captive generation permit with a capacity of 5MW,  six  certifications for Meter Service Providers and two  permits and two permits for Meter Asset Providers, ‘’ it said.

  • NERC fines AEDC N1.69bn, EKEDC N1.41bn for ‘overbilling’ customers

    NERC fines AEDC N1.69bn, EKEDC N1.41bn for ‘overbilling’ customers

  • Nigeria’s Power sector generates N3.95 trillion in five years – NERC

    Nigeria’s Power sector generates N3.95 trillion in five years – NERC

    Nigeria’s electricity distribution companies collectively generated approximately N3.95 trillion in revenue from 2019 to the first quarter of 2024, according to data from the Nigerian Electricity Regulatory Commission (NERC) released by the National Bureau of Statistics (NBS).

     

    The analysis revealed a steady increase in revenue over the past five years.

    The breakdown shows that in 2019, the power distributors generated N482.6 billion, which rose to N526.8 billion in 2020, N761.2 billion in 2021, N828.1 billion in 2022, N1.07 trillion in 2023, and N291.6 billion in the first quarter of 2024.

     

    Analysts in the Nigerian Electricity Supply Industry (NESI) attribute this consistent revenue growth to several factors, including ongoing tariff adjustments aimed at achieving cost-reflective pricing.

    These adjustments have enabled the distribution companies (Discos) to better align their revenue with the cost of electricity supply.

    Furthermore, the National Mass Metering Programme (NMMP) has significantly increased the number of metered customers, reducing the reliance on estimated billing and improving the accuracy of revenue collection.

    The NMMP has also helped to decrease Aggregate Technical, Commercial, and Collection (ATC&C) losses, which have historically plagued the sector.

    Despite this growth in revenue, the Discos continue to face significant challenges, such as high levels of unpaid bills, electricity theft, infrastructure deficits, and ongoing energy losses.

  • NERC report reveals $14.19m electricity debt from International customers

    NERC report reveals $14.19m electricity debt from International customers

    This headline concisely summarizes the main point of the article, highlighting the key finding from the NERC report.

    The Federal Government of Nigeria has revealed that the countries of Togo and Benin Republic owe a total of $14.19 million in unpaid electricity bills for the first quarter of 2024.

    This information was made public in a report by the Nigerian Electricity Regulatory Commission (NERC), which highlighted the non-payment of electricity bills by four international bilateral customers who receive electricity supply from Nigerian power generating companies (GenCos).

     

    The report identified the debtors as Para-SBEE in Benin Republic, owing $3.15 million, Transcorp-SBEE in Benin Republic, owing $4.46 million, Mainstream-NIGELEC in Togo, owing $1.21 million, and Odukpani-CEET in Togo, owing $5.36 million.

    According to NERC, none of these companies made any payments towards the cumulative invoices issued by the Market Operator for services rendered during the quarter in question, resulting in the significant outstanding debt.

  • Just in: Reps order NERC, DISCOs to reverse tariff hike now

    Just in: Reps order NERC, DISCOs to reverse tariff hike now

    The House of Representatives has asked the Nigeria Electricity Regulatory Commission, NERC, and the distribution companies, DISCOs, to reverse the tariff hike for Band A customers.

    This directive was given on Tuesday after the adoption of a report presented by the House Committee on Power.

    It would be recalled that NERC announced a hike affecting Band A customers, who are to pay N225 per kilowatt

    The House also resolved to probe the tariff hike pending an investigation.

    Presenting the report, the Chairman of the Committee on Power, Victor Nwokolo, said Nigerians cannot afford the new tariff.

    The Committee recommended a return to status quo.

    The recommendations were adopted by the Committee of the Whole, after which it was passed.

  • FG approves N21bn for purchase of meters – NERC

    FG approves N21bn for purchase of meters – NERC

    The Nigerian Electricity Regulatory Commission (NERC) has announced the approval of N21 billion for 11 electricity Distribution Companies (DisCos) to provide meters for customers.

    This announcement was made in NERC’s ORDER NO: NERC/2024/072 on The Operationalisation of “Tranche A” of the Presidential Metering Initiative Under the Framework of Meter Acquisition Fund.

    ”The order signed by NERC Chairman, Mr Sanusi Garba and Commissioner Legal,  Dafe Akpeneye, shall become effective From June 2024 and may be amended or revoked by subsequent orders issued by the commission.

    “The commission hereby approves the  sum of N21 billion apportioned pro rata to contribution by the DisCos as Tranche A of the MAF scheme.

    ”Attached to this order as Schedule 1 is a breakdown of the funds available for each DisCo for the purchase of end-use customer meters.

    ”All the meters to be procured and installed under the MAF framework shall be at no cost to the customers of the DisCos,” it said.

    According to NERC, it introduced the Meter Asset Provider (“MAP”) Regulations 2018 and subsequently, the Meter Asset Provider and National Mass Metering (“MAP&NMMR”) Regulations in 2021 to address metering challenges in the Nigerian Electricity Supply Industry (“NESI“).

    NERC said that the regulations provided several options for metering end-use customers but the interventions, though significant, had not resulted in the closure of the national metering gap which currently stood in excess of seven million customers.

    ”The inability of distribution companies (DisCos) to raise financing in the form of debt or additional equity was identified as the major constraint in the acquisition and deployment of end-use meters and other capital investments.

    ”The Meter Acquisition Fund (MAF) scheme was therefore, developed and approved by the commission, primarily to address the challenges of DisCos creditworthiness inhibiting the deployment of end-use meter in NESI.

    ”By creating a credible revenue stream from the market funds on the back of which long term financing may be secured by the utilities,” it said.

    NERC said that the management of Fund Manager (FM) based on terms and conditions, negotiated by the DisCos and approved by the commission.

    According to the commission, the federal government approved the Presidential Metering Initiative (PMI) with the overarching objective of closing the metering gap in the NESI within three years leveraging on smart metering technologies for data analytics.

    The MAF shall form one of the revenue streams for the repayment of the long tenor financing for metering.

    The order also revealed that the commission approved the deregulation of meter prices under the MAP scheme vide Order NERC/2024/040 to ensure an efficient pricing of meters while responding more quickly to changes in macroeconomic parameters.

    “The order provides that all prices of meters under the MAP scheme shall be determined through a transparent and competitive bidding process by eligible MAPs.

    “A competitive bidding process was held on  May 21, 2024 based on the provisions of Order NERC/2024/040 where a total of 24 ( MAPs participated across the 12 DisCos.

    ”A total of 44 bids were submitted for 10meters specifications,” it said.

    NERC said the deployment of funds under the MAF scheme would accelerate the deployment of meters and a closure of the current metering gap.

    ”Thereby reducing commercial and collection losses to DisCos, enhancing quality of service and improvement of customer satisfaction,” it said.

    NERC also noted that while the NESI is expected to leverage on the revenue stream under the MAF framework to raise substantial capital funding for metering, there was an imperative to accelerate a closure of the metering gap for all customers.

    ”Currently classified under tariff Band A for the purpose of revenue protection and facilitating demand side management for the affected customers.”

    NERC said that the DisCos should utilise the first tranche (Tranche A) of disbursement from the MAF scheme based on contributions made by DisCos as at the April 2024 markets settlement.

    It said that attached to this order as Schedule 1 was to procure and install meters for unmetered Band ‘A’ customers within their franchise areas.

    The commission said DisCos shall, within 14  days from the effective date of the order, conduct a transparent and competitive procurement process, for meter price determination, selection and engagement of MAPs/LMMAs for the metering of end-use customer meters under the MAF scheme.

    ”The order also directed that a report containing details of the process undertaken for the selection of MAPs/LMMAs including meter price, meter specifications.

    ”And the list of customers to be metered shall be sent to the commission for approval, within 20 days from the effective date of this Order.

    ” Upon approval of the commission, the DisCo shall enter into contracts with selected MAPs/LMMAs on one of the following terms,”it said.

    The commission said that where an Advance Payment Guarantee (APG) issued by a commercial bank in the country is provided by a qualifying MAP/LMMA, 30 per cent of the contract sum shall be paid by the FM on behalf of the DisCo to the MAP/LMMA.

    ” Upon execution of the contract. A further two milestone payments shall be made upon the completion of 60 per cent of contracted quantities and 100 per cent of the contract respectively, with the funds advanced against bank guarantee amortized over the payments.

    “Where the MAP/LMMA do not request an advance payment, the milestone payments shall be made upon the verified installation of 20, 60 and 100 per cent respectively of the contracted volume of meters.

    ”A vendor may, at his option, defer payment until the completion of the installation of the contracted volumes.

    “DisCos shall ensure that all the necessary resources and network clearance required by the MAP/LMMA to install meters based on installation plans are provided and/or completed,” it said.

  • How Discos generated N293bn in first quarter

    How Discos generated N293bn in first quarter

    Reports on the commercial performance of distribution companies obtained from the Nigerian Electricity Regulatory Commission has shown that the power firms raked in N95.26bn as revenue collections from their various customers in January 2024.

    The reports further showed that the Power distribution companies made a total of N292.71bn revenue in the first quarter of this year despite complaints of inadequate electricity supply by consumers.

    The NERC documents indicated that the 11 Discos had billed power users under their respective franchise areas a total of N130.92bn in January this year.

    Recall that In February, the power firms billed their customers N113.05bn but collected a total revenue of N97.01bn.

    The revenue collection by Discos increased in March to N100.44bn, out of a total billing of N126.56bn in the third month of the year.

    But as electricity distributors smile to their banks, power producers, on the other hand, have continued to complain about the lack of adequate payment for the electricity they produce and supply to the national grid.

    Similarly, consumers have also raised alarm over the poor supply of electricity across many locations in Nigeria by Discos.