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NERC Rounds-off Nationwide Consultations on Three Regulations and Metering Initiatives

Story by Michael Faloseyi & Kabir Ado
The Nigerian Electricity Regulatory Commission (NERC) on Thursday October 5, 2017 in Kano rounded-off consultations on three of its regulations- the Multi Year tariff Order (MYTO) Methodology, Business Continuity and Eligible Customers as well as discussions on metering.
The Commission’s consultations which took place across seven cities started in Lagos on September 18 and 19, 2017 and thereafter moved to others cities of Abuja, Port Harcourt, Enugu, Port Harcourt, Yola and ended in Kano.
Giving insight into the essence of the consultation, the Vice Chairman, Engr. Sanusi Garba, on the first day of the consultation in Lagos said, “Electricity regulation is driven by stakeholders’ consultation that is why whenever we have major initiatives we hold stakeholders consultations.”
Garba clarified that the focus of discussions on MYTO was not tariff increase but to determine the frequency of adjustments of MYTO components such as foreign exchange, inflation, gas price among others to reflect social-economic situation.
MYTO’s template is used in determining electricity tariff. MYTO presently has minor review which is done at intervals of six months and major review after five years. The consultation is to, therefore consider whether the frequency of review should be retained or changed.
In his explanation of the focus of consultation on Business Continuity Regulation, Garba said that the objective of the regulation was to prevent potential threat or signal any incidence that could prevent the utilities from been a going concern.
However, consultation on eligible customer was to provide the regulatory framework to the statutory declaration by the Minister of Power, Works and Housing, Mr. Babatunde Fashola, which allows certain categories of electricity consumers to buy power directly from electricity generation companies.
Discussions held on metering at the consultations were to consider proposals on alternative means to speed up provisions of meter for electricity customers in the Nigerian Electricity Supply Industry.
Speaking at the Kano event which rounds the seven-leg nation-wide consultation, Garba said, “These are parts of our initiatives to improve availability of electricity in the Nigerian electricity supply industry (NESI). We expect inputs from participants which include Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Manufacturers Association of Nigeria (MAN) and other stakeholders.”
Comments from participants at consultations will form part of the input for those regulations.