The Nigeria Electricity Regulatory Commission has granted approval for the Extraordinary Tariff Review applications, Performance Improvement Plan, and Capital Expenditure for electricity distribution companies.
It disclosed this on Sunday in the NERC Order on Performance Improvement Plan and Extraordinary Tariff Review applications for power distributors operating in Nigeria.
The commission said the PIP and Capital Expenditure programme shall take effect from July 1, 2021 and shall remain effective until June 30, 2026.
It explained that the Discos had applied to the commission for a review of the provisions for Capital expenditure their various Multi-Year Tariff Order tariffs to support the implementation of their improvement plans over the next five years.
The regulator noted that under the Power Sector Recovery Programme, it was envisaged that the commission would implement a robust tariff review process aiming at improving performance in the Nigerian Electricity Supply Industry.
“This process involved a review of CAPEX allowances in MYTO model compliance with PIPs of the Discos,” it said.
The NERC stated that the approved improvement plan and extraordinary tariff application shall form the basis for Discos to prioritise the implementation of their proposed capital expenditure initiatives.