The Nigerian Electricity Regulatory Commission has ordered power distribution companies to install meters in all ministries, departments and agencies of both federal and state governments before the end of August.
It gave the order in a regulatory order that was issued to each of the 11 power distributors.
In the order, which was seen by our correspondent, the government pointed out that the responsibility for revenue collection from power consumers across the country was on Discos.
The government, therefore, stressed that it was mandatory for the power distributors to provide all MDAs with appropriate meters within a period of 60 days beginning from July1.
It was observed that the order, which was signed by the Chairman, NERC, James Momoh, and the Commissioner, Legal Licensing and Compliance, NERC, Defe Akpeneye, became effective July 1.
The commission said, “This order reiterates that the responsibility and initiative for revenue collections from all customers including ministries, departments and agencies of states and Federal Government rests with the Discos.
“Accordingly, this order makes it mandatory for all Discos to meter all MDAs with appropriate meters of their choice within 60 days from the effective date of this order.
“This order shall be effective from 1st July 2019.”
The commission, however, noted that all Discos reserved the right to disconnect any MDA defaulting on the payment for electricity in line with the Regulation on Connection and Disconnection Procedures for Electricity Services.
Calls to the spokesperson, Association of Nigerian Power Distributors, the umbrella body of Discos, Sunday Oduntan, rang out.
He was also yet to respond to text enquiry on the position of the Discos as of time filing the story.
On market remittance by Discos, the regulator stated that the Power Sector Recovery Programme would help in achieving this, as it noted that the PSRP provides for a gradual transition to cost-reflective tariffs with safeguards for the under-privileged in the society.
It said, “It is proposed that an intermediate review in end-user tariffs on January 1, 2020 and transition to full cost reflectivity shall be achieved by July 2020.
“In the interim, the Federal Government, under the PSRP, has committed to fund the revenue gap arising from the difference between cost reflective tariffs determined by the commission and the actual end-user tariffs.”
It noted that the waterfall of market revenues during the transitional period shall be in line with the fact that all Discos were obligated to settle their market invoices in full.
Authored By: Okechukwu Nnodim