The National Electricity Regulatory Commission (NERC) has said that it’d push to bring an end to discretionary remittance from the DisCos by implementing a settlement system that would be open to all parties in the market. In the communique of the regulatory meeting held on Monday with the operators of the Discos in Abuja, NERC reported that the decisions of the DisCos to collect proceeds from their sales of electricity to consumers in the country but turn around to remit whatever amount they liked to the power market is wrong and discouraging investments in the sector.
According to the report, the meeting was the first that NERC’s chair, Prof. James Momoh, would have with the Discos since he took up his appointment as the commission’s CEO. “The meeting reemphasized the need to uphold customer service standards especially as it relates to refund of monies collected from customers for meters under the scrapped CAMPI scheme. The Discos were directed to publish a reminder in any two national newspapers that customers who paid for CAMPI yet unmetered should come for refund with details of payment,” said the communique.
WHY ELECTRICITY TARIFFS SHOULD BE RAISED-CPEEL ROUNDTABLE DISCUSSANTS – Nigerian Tribune
The Director, Center for Petroleum, Energy, Economics, and Law (CPEEL), Prof. Adeola Adenkinji, said that electricity tariffs should be raised to an amount that is profitable for gas suppliers and power companies, and that government should regulate pricing to create a willing-buyer/willing-seller situation across the gas supply value chain. Doing this will encourage greater investment especially foreign ones in Nigeria’s gas sector, improve gas reserves utilization and supply, and consequently improve electricity supply, he said. This conclusion was reached at the third CPEEL roundtable dialogue held at the International Conference Center, University of Ibadan, on Thursday.
Prof. Adeola said that the title of the roundtable, “Gas to power in Nigeria: Issues, Challenges, and Options,” was chosen to provide intellectual discussion and input that will stimulate development in Nigeria’s gas sector which, according to him, holds the key to solve the country’s comatose power sector.
The President of Delphi Ventura Group, Fisoye Delano, one of the roundtable discussants said: “To increase power generation and power supply in Nigeria, the fundamental thing is that the tariff has to be cost-reflective to pay for the entire chain. That is, there should be sufficient value for the GenCos, DisCos and Gas suppliers. All of these are already contained in the NERC charter. They are the ones to manage the tariff and ensure that it is cost reflective and it is also market-reflective.”