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Request For Intervenors For The Review Of Performance Improvement Plans & Extraordinary Tariff Review Applications

REQUEST FOR INTERVENORS FOR THE REVIEW OF PERFORMANCE IMPROVEMENT PLANS AND EXTRA ORDINARY TARIFF REVIEW APPLICATIONS SUBMITTED BY DISCOS AND TCN

Pursuant to procedures set out in Section 76 of the Electric Power Sector Reform Act 2005, the Nigerian Electricity Regulatory Commission adopted the Multi-Year Tariff Order (MYTO) methodology for electricity pricing in Nigeria, which sets out the basis and pricing principles and procedures for effecting Minor and Major Reviews of electricity tariffs in Nigeria.

The MYTO provides a tariff path for the electricity industry, with biannual minor reviews to take into account the impact of changes in a limited number of parameters (specifically inflation, US Dollar exchange rate to Naira, natural gas price and available generation capacity) and major reviews every 5 years, when all other inputs are reviewed with stakeholders.

Section 9 of the ‘‘Regulation on Procedures for Electricity Tariff Reviews in the Nigerian Electricity Supply Industry’’ allows for Extraordinary Tariff Review in instances where the utilities can demonstrate that industry parameters have changed from those used in the operating tariffs to such an extent that a review is required urgently in order to maintain industry viability.

 

In light of the above, the Nigerian Electricity Regulatory Commission has received Extraordinary Tariff Review Applications from the eleven (11) electricity distribution companies (DisCos) and the Transmission Company of Nigeria Plc (TCN) proposing a review of the following:

a.    Revenue Requirements –

             i.    To consider Performance Improvement Plans (PIPs) of Distribution Companies submitted as part of the Extraordinary Tariff Review Application;

           ii.     To consider the Extraordinary Tariff Review Application submitted by TCN;

          iii.    To consider proposals on new Ancillary Service Charge (Spinning Reserve) submitted by the TCN through an Extraordinary Tariff Review Application.

b.    End-user tariff designs (Tariff Classification); and

c.     Cost of energy (generation tariff) to consider impact of additional energy procured bilaterally by the Discos.

 

Any person wishing to participate in the proceedings as an intervenor should forward his/her application to NERC. The Request to Participate shall be in an electronic copy in Microsoft Office format or by e-mail, and shall include the following:

       i.        An explanation of the person’s interest in the proceeding and how the party would be affected by the outcome of the Application;

      ii.        A description of the party’s concerns, observations comments and/or objections to the application; and

     iii.        An indication as to whether the party supports or objects to the Application.

  

Request to participate should be forwarded to the Commission within one (1) week of this publication. Details of the applications can be accessed by clicking here for the review of all stakeholders and the general public. All applications should be sent in soft and hard copies to:

The Chairman

Nigerian Electricity Regulatory Commission

Plot 1387 Cadastral Zone A00

Central Business District

Abuja

And

By e-mail: comments@nerc.gov.ng

 

For further information, please contact:

Sharfuddeen Z. Mahmoud at sharfuddeen.mahmoud@nerc.gov.ng

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