As the Nigerian Electricity Supply Industry's (NESI) deregulation moves into its final phase, the power consumer fund as a component of the 2005 Electric Power Sector Reform Act (EPSRA) will take off next year, the Nigerian Electricity Regulatory Commission (NERC) said yesterday.
Speaking at a capacity building workshop for energy correspondents organized by the Commission, a Senior Manager in the Market Competition and Rates division at the CommissionKenneng Gwom said a framework for the administration of the fund was being worked on.
She spoke on the topic, 'NERC and the Post Privatization Regulation Agenda.' According to her, the fund will be warehoused at the Commission and used to subsidize electricity for the less privileged.
The money for the fund is to be generated from special customers and government subsidies, she said.
Gwom said the market rules and grid code approved in 2008 will come "into effect in the transitional stage of the market which the Commission anticipates will happen by 1st quarter 2013."
Some of the issues that are expected to be relevant after the privatization process is concluded are key performance indicators which would involve monitoring; metering; implementation of the Market Rules & Grid Code; power Procurement; effect of the anticipated expansion of the market and the post MYTO II issues.
The Commission had estimated about N1.7 billion for the procurement of about 2.8 million meters for electricity consumers within 18 months after the introduction of the Multi Year Tariff Order (MYTO) II, she said.
The electricity distribution companies have three options to get finance to procure the meters, Daily Trust learnt. These include; monthly revenue collection, capital budget from owners and external funding.