NERC approves N756bn investments for 11 Nigerian power DisCos

*The Nigerian Electricity Regulatory Commission has approved N756.74 billion Capital Expenditure for the electricity Distribution Companies for the next five years in their Performance Improvement Plan, expected to take effect July 1

Alexander Davis | ConsumerConnect

Sequel to the report that Nigeria’s 11 electricity Distribution Companies (DisCos) could only generate the N756billion fund through tariffs to power their operations, the Nigerian Electricity Regulatory Commission (NERC) has approved N756.74 billion Capital Expenditure (CAPEX) for the DisCos for the next five years in their Performance Improvement Plan (PIP).

ConsumerConnect gathered that the electricity distribution firms earlier had requested the projected investment directives in 2020 through an extraordinary tariff review application to the sector regulator.

According to Sanusi Garba, Chairman, and Dafe Akpeneye, Commissioner for Legal, Licencing and Compliance of NERC, in the order the duo signed April 29, 2021, the approved PIP is expected to take effect by July 1, 2021 and end by June 30, 2026.

There are anticipations of a tariff increase in the country as the DisCos could only generate the N756billion fund through the tariffs, report stated.

Recall that NERC recently announced it would review the Multi Year Tariff Order (MYTO) 2020 tariff and could implement the result July 1.

Engr. Sale Mamman, Honourable Minister for Power was said to have clarified the development in a statement that the increase would not be significant for power consumers.

In regard to the information contained in separate orders to the 11 DisCos, the highest fund approval went to Ikeja DisCo (IKEDC) as it got N121.9billion to implement its network improvement target.

Kaduna DisCo trailed IKEDC with N114billion target; Eko DisCo is the third with N93.76billion expenditure while Benin DisCo will spend N93.5billion on these investments.

Likewise, Ibadan DisCo is to spend N91.1billion, Abuja DisCo will spend N75.98billion, whereas Port Harcourt got N75.5billion as approved CAPEX.

Enugu DisCo also has N67.4billion approved fund, Kano DisCo will spend N63.1billion investing in network and transformer infrastructure, while Jos DisCo got N47.2billion as its approved investment fund.

The lowest is Yola DisCo with N27.3billion for its five-year investment, according to report.

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