INVESTMENT IN DisCo NETWORK
Our transformer has developed a fault and we have been asked by the DisCo to contribute money towards the cost of the repairs. Is this approved by NERC?
Electricity consumers are not required to pay for the repair and/or replacement of DisCo assets except in cases where it is proven that the customer(s) willfully destroyed such assets. Any customer asked by the staff of a utility to make payment for the repair of any asset should kindly report such person in writing to the DisCo’s office nearest to them or call the whistle blower/customer care numbers of the DisCo to report such incidence. Such customers may also send a written complaint directly to the Commission.
Our community applied to be connected to electricity supply, and the DisCo gave us a list of assets to buy before we can be connected. Is this an approved procedure by the NERC?
Customers are not expected to purchase poles, transformers and other assets for the utilities considering that the cost of such items have already been incorporated for recovery through the electricity tariff paid by the consumers. Ideally, the DisCos should finance the purchase of such assets through their Internal Generated Revenue (IGR), loan from banks or shareholders’ funds. Where the DisCo is unable to source the required funding for the acquisition of required materials, then customers may opt to sign an agreement with the utility for the purchase of such assets with the understanding that the customers will be refunded for the full cost of those assets over an agreed period of time.
Customers are to please note that it is not the responsibility of communities to buy/supply poles, transformers, and similar items for the DisCos. However, if any community wishes to contribute to the purchase of such assets to facilitate or expedite connection to supply, such communities must ensure that they strictly adhere to the provisions of the NERC regulation on the investment in electricity networks for their guidance as this would ensure the funds provided by such communities are recovered over an agreed period of time. (Please click here for the Investment in Network Regulation).
A transformer was donated to our community, and the DisCo is requesting that we donate it to them before they can energize it. Is this the proper connection process approved by NERC?
The Commission does not endorse communities purchasing or donating assets to the DisCos unless this is in line with subsisting regulation on third party investment in electricity network where a provision is made for a refund of the cost to customers. Any community that voluntarily decides to do so should ensure that they have a well-documented agreement with the DisCo on the terms and conditions for such purchase or donation.
Why is the DisCo refusing to refund us the cost of transformers, pole and other assets we bought for our connection?
The Commission has since 2015 issued a regulation to guide customers on investing in the Nigerian Electricity Supply Networks. Please click HERE for a copy of applicable regulations before you embark on procuring any assets for the DisCo.