NERC Issues Consultation Guidelines For DISCOs

• The Nigerian Electricity Regulatory Commission (NERC) has issued guidelines for consultation by operators that want to review the cost of generation, transmission and supply of electricity, the prices of electricity services and classification of customers.
• The guidelines are designed to ensure that such consultations are comprehensive, rigorous open to all relevant stakeholders, meaningful and effective.

“NERC will not accept and consider the application of any distribution company for Revenue Requirement (RA), Rate Design (RD) and Customer Classification (CR) if it has not completed customer consultation in line with these guidelines.”

“These guidelines set out the principles and steps the Distribution Companies should adopt for engaging stakeholders before submitting tariff review applications to the Commission. It aims to assist Discos make the right decisions about when, with whom and how to consult. The Consultation process is expected to achieve real engagement rather than merely following a routine or bureaucratic process,” NERC maintained.

• It indicated that the consultation will create accountability in the electricity market as customers will know how the operators are serving them and the various costs of service that justify the rates they are paying
• Source: Energy Mix Report