The Federal Government, through the Bureau of Public Enterprises (BPE) and Nigerian Electricity Regulatory Commission (NERC), plans to evaluate the progress of the financial commitments made by the different owners of electricity distribution companies in the nation.
This was revealed yesterday at the launch of the National Council on Power (NACOP) in Abuja.
Speaking at the launch, the Director General of BPE, Mr Benjamin Dikki, said that the investors were to account for their $1.8 billion five-year expansion commitments to the distribution networks.
“NERC and BPE have drawn up systemic measures to check and enforce these commitments and this is in addition to structured mechanisms that exist in the market,” he said.
“The five-year total CAPEX for distribution companies is almost $1.8 billion and the investment to be made by the Discos cover the commitments they have all made in the following areas; metering (about six million meters), health, safety and environmental practices, reduction in number of customer interruptions due to network faults, new customer connections and network expansion as well as improving customer services and complaints handling procedures,” he added.
Mr Dikki further stated that there will be no tariff review for distribution companies that fail to make investments in their networks and attain certain percentage of the Aggregate Technical Commercial and Collection (ATC and C) loss figures that they submitted. “They will bear their losses directly,” he said, “and it is simple because the market is structured to make these efficiencies possible.”
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