The Nigerian Electricity Regulatory Commission (NERC) has responded to claims by the 11 electricity distribution companies (Discos) that its regulatory actions contributed to the current N809.8 billion revenue shortfall of the electricity market.
The Acting Chairman of NERC, Dr. Anthony Akah said that such claims by the Discos through their association – the Association of Nigerian Electricity Distributors (ANED) that NERC contributed to the illiquidity challenges of the market from its regulatory decision flip-flops, were false and unfair to the regulator. Akah said more than any other operators in the country’s electricity market, the Discos have contributed to the poor showings of the market. He cited instances of the Discos’ withholding more than they were allowed of the market’s revenue, and at the same time backing it up with a court order.
Akah equally said a 22 per cent interest was sculptured into the 2015 tariff to allow the Discos borrow funds from financial institutions to finance their capital expenditures, hence the falsehood that they were not given the freedom to borrow funds for their capital expenditures. On the debts owed the Discos by government agencies, which the Discos claim was heavily impacting their operations, Akah said that the significant impact of the MDA debt is more on about three Discos where you have more of government offices but the significance was not so much on the other Discos.