Daily Trust (Abuja)

Nigeria: Electricity Commission Issues Guidelines On Estimated Billing

The Nigerian Electricity Regulatory Commission (NERC) has unveiled new sets of methodologies for electricity connection for new customers and estimated billings as well as framework for bulk generation procurement of power. Addressing reporters yesterday in Abuja, Chairman and Chief Executive of the Commission, Dr Sam Amadi, said the methodology provides that new customers of electricity distribution companies (DISCO) only need to provide materials required to get connected from the nearest point of supply.

A customer would have to get a list of items needed from DISCO and provide same to be connected by a certified electrician. Meters would be installed for free by the DISCOs without any cost to the customers, he emphasized.

For estimated billing, Dr. Amadi said henceforth, unmetered customers shall be billed based on 'weighted average cluster load'. This method involves the subtraction of the entire metered load from energy supplied to feeder (33KV or 11KV).

An appropriately determined availability factor and correction of losses which is aggregated among the various number and classes of supplied feeder is then applied.

Dr Amadi further explained that a new regulation to govern the bulk generation procurement in the electric power sector was in offing, calling for public input to improve the outcome.

He noted that NERC has so far issued 40 licenses to potential independent power producers for the supply of new electricity on-grid generation capacity of more than 10, 000MW.

All the proposals were unsolicited, he said, noting that "the resulting cost to the Nigerian power system and the consumer could be significant and perhaps unacceptable if this unorderly approach continues."

According to him, new licenses would only be issued when the potential licensee is able to provide a workable plan of how all the variables would be met to generate power within a specific timeframe.

For example, a power plant must be situated in a location where gas would be easily accessible among others.

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