The Nigerian Electricity Regulatory Commission (NERC), has emphasized that electricity consumers does not have the responsibility of paying for any asset of the electricity sector.
The clarification is against the backdrop of the prevailing circumstances where electricity consumers contribute money for purchase of new transformers, replacement of old ones, replacement of damaged power distribution poles, cables among others.
However, NERC said that based on formal agreement endorsed with Distribution Companies, consumers can partner in investing in the networks and recover such funds over a period of time through tariff discounts.
The NERC Commissioner, Consumer Affairs, Aisha Mahmud, made the clarification during the panel session on “Challenges of Electricity Customers in Nigeria: Insights from the Judiciary and other Perspectives from the Field” during the first day of the 4th Seminar for Judges organised by NERC in Abuja, Tuesday.
According to her, “We have to make it clear again that it is not the responsibility of the consumers to pay for any asset in the electricity sector. We have made that clear in one of our regulations which is the investment in electricity network regulation.
“There are agreements that Nigerians could sign with the Distribution Companies to partner in investing in the networks and that will be recovered over time in the tariff. So far, we have approved some of these agreements but we think consumers still need more enlightenment on this process and we will continue to do that.”
Earlier, NERC Chairman, Sanusi Garba, had set the stage in his remarks during the opening ceremony of a three-day Seminar for Judges organised by the Nigerian Electricity Regulatory Commission (NERC) in Abuja.
He said: “The key objectives of the seminar is to stimulate a discourse on emerging legal issues relating to the Nigerian Electricity Supply Industry (NESI) and to appraise the judiciary of the recent changes in the regulatory landscape.
“We will start the day with a presentation that maybe described as Electricity 101 and this will be followed over the next two days by presentations on typical industry issues by very distinguished professors, lawyers, investors including the architects of the Electricity Act. We therefore invite Your Lordships and invited guests to very engaging sessions as we work towards eradicating patches of darkness in the society.”
On his part, Minister of power, Adebayo Adelabu notes that “The Electricity Act 2023 introduces far reaching features that propel market liberalisation, extend regulatory reach, and establish a more coherent policy framework that will mitigate the operational and systemic risks in the Nigerian Electricity Supply Industry (NESI).
“The Nigerian judiciary has helped NESI with notable pronouncements and the act of the judiciary goes far in attracting private investment in the power sector. This seminar is a laudable initiative of the Commission geared towards building the capacity of the Nigerian bench towards achieving the desired objective of predictable, clear and logical judicial precedent in matters affecting the power sector.”
The Chief Justice of Nigeria, Hon. Justice Olukayode Ariwoola, represented by the NJI Administrator, Hon. Justice Salisu Garba, in a keynote address at the opening ceremony, applauded electricity sector as one that is very important to the nation and one that has far-reaching implications for the growth and prosperity of the country.
“It is in this light that the theme of this workshop seeks to draw our attention to some of the current realities, especially realities that are necessitated by the activities in the electricity and energy subsector and how these affects judicial officers in their dual capacities as citizens and as administrators of justice according to law”, he said.
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