The Nigerian Electricity Regulatory Commission (NERC) has approved the sum of N121.92 billion for Ikeja Electric Plc infrastructure upgrade for the next 5 years and also N93.76 billion for Eko Electricity Distribution Company (EKEDC) infrastructure upgrades within the same period.
This was contained in the NERC’s Performance Improvement Plan (PIP) and Extraordinary Tariff Review Application signed and released on Monday, May 3, NERC’s Chairman, Sanusi Garba and Dafe Akpeneye, ;C:”ommissioner, Legal, Licensing and Compliance.
Techeconomy.ng gathered that the PIP and Capital Expenditure (CAPEX) programme would take effect from July 1, 2021 to June 30, 2026.
Speaking about the approval, the NERC said theupgrades would improve the distribution of power supply by the DisCos citing public hearing scrutiny in its PIP and Extraordinary tariff review applications in a bid to ensure accountability.
According to the commission, the CAPEX for Ikeja Electric Plc would be N24.38 billion annually from 2021 to 2026, while for Eko Electricity, it would be N18.75 billion for the same period, totalling N93.76 billion.
The upgrades would be in the areas of existing network capacity, technological enhancements to reduce outages and acquisition of tools to improve network performance.
Meanwhile, Techeconomy.ng periously reported that the NERC had disclosed its plan to introduce another electricity tariff review for the 11 distribution companies (DisCos) in the country.
The NERC, in a notice posted on its website on Monday, said the extraordinary tariff review is as a result of changes in inflation, foreign exchange, gas prices, available generation capacity and capital expenditure.
Techeconomy.ng gathered the commission explained that the review is expected to begin in July.
It said: “The MYTO provides for Minor Reviews (every 6 Months), Major Reviews (every 5 years), and Extraordinary Tariff Reviews in instances where industry parameters have changed from those used in the operating tariffs to such an extent that a review is urgently required to maintain the viability of the industry.