NERC Approves Five-year Performance Improvement Plan for Discos

03 May NERC Approves Five-year Performance Improvement Plan for Discos

The Nigerian Electricity Regulatory Commission (NERC) has approved a five-year Performance Improvement Plan (PIP) and Capital Expenditure (Capex) benchmark for power distribution companies (Discos), expected to run from July 1, 2021, to June 30, 2026.

The commission said the review of the capital expenditure allowances were to align with PIPs of the Discos and form the basis to prioritise the implementation of the proposed initiatives.

It explained that the Discos are expected to commit to the growth parameters, which include the reduction of Aggregate Technical, Commercial and Collection (ATC&C) losses, reliability, and availability of services, billing, and payment processes as well as metering.

The order signed by NERC Chairman, Mr. Sanusi Garba, and Commissioner, Legal, Licensing and Compliance, Mr. Dafe Akpeneye, stated that given capacity growth, the Discos will require investments in the network to adequately plan for the increased demand over the next five years.

NERC added that before arriving at the figures, there had been engagements to instill accountability between the Discos and their customers on their services and justification for associated costs and resulting tariffs.

It explained that the meetings were meant to minimise disputes by engendering understanding and trust between the power distributors and their customers and provide an opportunity to engage with customers on the service improvement investment programme.