NERC Issues New Conditions For Purchase of Transformers, Meters by Electricity Consumers

NERC Issues New Conditions For Purchase of Transformers, Meters by Electricity Consumers

  • The National Electricity Regulation Commission (NERC) has said that electricity consumers can request for refund for assets purchased for DisCos
  • The regulator stated that it is not the responsibility of consumers to get assets for DisCos but that an agreement should be signed for a refund
  • Also, NERC stated that consumers who obtain meters through the National Metering Programme should be refunded via energy credits

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The National Electricity Regulatory Commission (NERC) has issued a guideline or condition under which consumers can purchase transformers, meters, poles or any asset for Electricity Distribution Companies (DisCos).

The electricity regulator said that when a consumer purchases any electricity asset, they have to sign an agreement with the DisCos stating when and how they would be refunded the cost of the transformer or acquisition bought.

NERC, Electricity, Consumers, Transformers
Aisha Mahmud, Commissioner for Consumer Affairs, NERC Credit: NERC
Source: Getty Images

Agreement with Discos should contain dispute resolution clause

A report stated that NERC's Commissioner for Consumer Affairs, Aisha Mahmud, said this in Abuja at the 3-day NERC/Abuja Electricity Distribution Company Consumer Complaint Resolution Meeting.

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Mahmud said at the meeting that it is not the responsibility of electricity consumers to buy transformers or any assets for any Discos. The agreement should contain a dispute resolution clause and other items expected of a standard contract.

Mahmud said:

""t is not the responsibility of the consumers to buy meters, poles or any assets for the DisCos because we have already provided for that in the utilities' tariff.
"But under any circumstances that you have to purchase this item and you cannot wait for the DisCos to make that investment, we have made provision for that under our ""Investment Regulation."

Mahmud said that NERC had developed an investment law specifying that if a customer has to buy a transformer, it has to be done via an agreement.

According to her, the agreement should contain what to expect from the Discos. For example, she said the DisCos should use their Internally Generated Revenue to purchase the assets or use stakeholders' investment to borrow money from banks to acquire the assets.

If they cannot acquire the assets, consumers can come in and be refunded, Mahmud stated.

Consumers to be refunded for meters purchased

According to her, NERC's mandate is to educate consumers about their responsibilities on issues such as metering, bypass or meter tampering.

The Commissioner said DisCos are mere collection agents and that the revenue collected does not belong to them entirely, but they pay the Transmission Company of Nigeria and the GenCos.

NERC stated that electricity consumers are not required to pay directly for meters they obtain under the National Mass Metering Programme.

One of the policies of NERC is that consumers would be refunded for meters purchased under the Mass Metering scheme through energy credits to the consumer during electricity supply.

FG set to review electricity tariffs, 6 months after carrying out similar exercise, provides explanation reported that the Nigerian Electricity Regulatory Commission (NERC) will from July 1, 2022 review electricity tariffs, about six months after carrying out a similar exercise, ThisDay reports.

In a memo marked: Notice Of Compliance in Respect of the Biannual Review of the Revenue Requirements of Licensees, the power sector regulator said that the adjustment will cover among others, changes in relevant macroeconomic indices.

However, it stated that it would not necessarily lead to a tariff increase for consumers, noting that some end users may actually have their rates reviewed down if the data available indicated.


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