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NERC Explains Conditions For Purchase Of Transformers, Meters, Others

NERC Explains Conditions For Purchase Of Transformers, Meters, Others

NERC Explains Conditions For Purchase Of Transformers, Meters, Others

NERC Explains Conditions For Purchase Of Transformers, Meters, Others

Conditions for the purchase of transformers, meters, poles, and other assets by electricity consumers on behalf of electricity distributors have been established by the National Electricity Regulatory Commission (NERC) (DisCos).

The power sector regulator stated that if a customer purchases a transformer or other electricity asset, they must sign an agreement with the DisCos outlining the terms under which they will be reimbursed for the purchase price.

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This was discussed at length during the three-day NERC/Abuja Electricity Distribution Company (AEDC) Customer Complaint Resolution Meeting, where NERC’s Commissioner of Consumer Affairs Aisha Mahmud made the announcement.

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Not customers’ responsibility: During the meeting, she clarified that it was not the responsibility of electricity consumers to buy transformers or any other assets for DisCos.

NERC Explains Conditions For Purchase Of Transformers, Meters, Others

Mahmud added that the agreement should contain a dispute resolution clause and all other items that are expected of a standard agreement.

It is not the responsibility of the consumers to buy meters, poles or any assets for the DisCos because we have already provided for that in the tariff of the utilities.

  • “But under any circumstances that you have to purchase this item and you cannot wait for the DisCos to make that investment, we have made provision for that under our “Investment Regulation.’’

Investment regulation: Electricity customers are not expected to make any upfront payments for meters installed as part of the National Mass Metering Programme, NERC, the power sector regulator, has repeatedly stated in previous policy statements (NMMP). said:

  • The agreement should contain a dispute resolution clause and all other items that are expected of a standard agreement.
  • “What we expect from the DisCo is to use their Internally Generated Revenue (IGR) to buy those assets or rather use shareholders’ investment or borrow from the banks to purchase those assets. In the event that they are not able to buy those assets, customers can come in and they have to be refunded.
  • “So what the consumers don’t know is that regulation exists and they go about making all sorts of investment which DisCos say is a donation to them because there is no agreement.’’

Consumers’ rights and obligations: The commissioner also explained that it was part of NERC’s responsibility to educate customers on their rights and obligation regarding the electricity market.

NERC Explains Conditions For Purchase Of Transformers, Meters, Others

She noted, with dismay, that the commission realised that most consumers do not know about the existence of the regulator.

  • “They don’t know their right, they have a lot of rights that they are not aware of. It was our duty to tell them that it is their right to get a meter as Discos are not doing you any favour to issue you a meter.’’

Mahmud said that NERC’s mandate is also to educate the consumers on their responsibilities such as the issue of meters, bypass or tempering with meters.

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  • They should know that the Discos are just merely collection agents and the revenue they collect is not entirely their own as they have to pay gas suppliers.
  • “Pay the Transmission Company (TCN) and the generation companies so customers should know that once they touch the utilities they are also sub-charging themselves.’

Electricity customers are not expected to make any upfront payments for meters installed as part of the National Mass Metering Programme, NERC, the power sector regulator, has repeatedly stated in previous policy statements (NMMP).

NERC Explains Conditions For Purchase Of Transformers, Meters, Others

 

  • While it stated that it is the responsibility of the DisCos, NERC, however, noted that consumers may elect to acquire a meter from the Meter Asset Programme (MAP).
  • NERC pointed out that the regulatory framework approved by the commission under MAP/NMMP Regulation provides for a refund of the cost of the meter through energy credits to the customer at the time of supply of electricity.

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I Am a financial analyst, Entrepreneur, Blogger and Business model. With 15 years' Consultancy Experience.

IBEH C. JOE

I Am a financial analyst, Entrepreneur, Blogger and Business model. With 15 years' Consultancy Experience.

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