BY BANYO TEMITAYO
The Nigeria Electricity Regulatory Commission has approved new Extraordinary Tariff Review applications, Performance Improvement Plan, and Capital Expenditure for electricity distribution companies, effective from July 1, 2021 to June 30, 2026.
The orders, issued on Sunday to the DISCOs, referred to applications for extraordinary tariff review, PIPs and capital expenditure for the next five years.
For the Ikeja Electricity Distribution Company, the regulatory instrument may be cited as NERC Order on PIP and Extraordinary Tariff Review Application for Ikeja Electricity Distribution Plc, NERC said.
IKEDC, like other DISCOs, had applied, in November 2019, for a review of the provisions for CAPEX in its Multi-Year Tariff Order, to support the implementation of its PIP over the next five years, the Commission added.
“Under the Power Sector Recovery Program, PSRP, it is envisaged that the commission would implement a robust tariff review process aiming at improving performance in the Nigerian Electricity Supply Industry, NESI.
“This process involved a review of CAPEX allowances in MYTO model compliance with PIPs of the DISCOs.
“The approved PIP and Extraordinary Tariff Application shall form the basis for IKEDC to prioritise the implementation of the proposed CAPEX initiatives.
“The approved PIPs shall also form the basis for defining Key Performance Index for IKEDC for the next five years by the Commission with an emphasis on improvement in energy throughout and improving service delivery to customers,” the NERC order read in part.
Over the next five years, the proposed interventions, according to the document, will allow the company to increase the total energy supplied across IKEDC from the 2019 levels of 4,469Gwh/year to 5,263GWh/year by December 2022.
The company also plans to increase the average duration of supply to customers in each tariff band over the same period, noting that it would increase platinum cluster from an average of 17 hours per day to a minimum of 20 hours per day.
IKEDC also plans to reduce the average duration of interruptions from 12 hours to eight hours per month by December 2022.
