Incompetent and ineffective electricity distribution companies (Discos) would be excluded from participating in the new electricity tariff regime scheduled to be announced in January 2012, the Nigerian Electricity Regulatory Commission (NERC) has said.
?
Chairman of the Commission, Dr. Sam Amadi who disclosed this at a Power Consumer Assembly yesterday in Abuja, said in view of the importance of efficient distribution of available electricity supply only efficient electricity distribution companies would be allowed to benefit from the new tariff rates.
He maintained that irrespective of the state of power supply to consumers, the proposed increase of electricity tariff would be implemented next January, even as he noted that given the intervention of the federal government through the ministry of power, electricity supply was set to improve in the coming months.
While expressing doubts as to whether these improvements would satisfy the Nigerian power consumers, Amadi said: “One thing is certain, we will not sign any tariff if it does not appear to us that the sector is properly regulated by operators such that it is cost reflective and beneficial to all parties because that will be illegal.”
Amadi further stressed that the commission would ensure that the Freedom of Information (FOI) Act was adopted, and that all the 13 mandatory disclosure of records contained in the Act must be adhered to by operators in the sector before signing the new tariff, adding “we will not sign the tariff if we are not sure that the sector is better managed and regulated.”
On his expectations for improved power generation and distribution which the government has pledged, the NERC boss noted that government has stepped up efforts in power generation, an indication of its intentions to improve the sector, while the commission is working hard to ensure that other necessary improvements in the sector? were addressed.
According to him: “We cannot say because we do not have enough capacity, then we will not regulate the sector properly when we can actually do other things like efficient metering to ensure efficiency in the sector, other improvements that needs to take place in the sector are better efficiency in customer service, the type that will result to less power outages and customer satisfaction.”
On metering, he said that? Abuja distribution company has significantly improved adding that the commission was monitoring others to ensure that the proper thing was? done, stressing that “transparency and public disclosure of accounts and records would be emphasised by the NERC because the old Nigerian Electric Power Authority (NEPA) was not just only mismanaged by lack of funding but also by lack of financial disclosure.”
?
?