NERC approves N215.68bn for upgrades of Ikeja, Eko DisCos | Ripples Nigeria
Connect with us

News

NERC approves N215.68bn for upgrades of Ikeja, Eko DisCos

Published

on

Transcorp Power Consortium beats two others to win Afam Power Plc bid

The Nigerian Electricity Regulatory Commission (NERC) has given approval to Ikeja Electric Plc to invest the sum of N121.92 billion for infrastructure upgrade across its network within a period of five years.

NERC, which is the regulator of Nigeria’s electricity sector, also approved N93.76 billion for the Eko Electricity Distribution Company (EKEDC) to upgrade infrastructure across its network within the same period.

This was publicised in the Performance Improvement Plan (PIP) and Extraordinary Tariff Review Application for both DisCos on Monday in Lagos.

The documents were jointly signed by the NERC’s Chairman, Mr Sanusi Garba, and Mr Dafe Akpeneye, Commissioner, Legal, Licensing, and Compliance.

NERC said the approved PIP and Capital Expenditure (CAPEX) programme would take effect from July 1, 2021, to June 30, 2026, unless amended by the commission.

“The purpose was to boost power supply and distribution by the Electricity Distribution Companies to their customers.

Read also: NERC directs DisCos to replace three million faulty, obsolete meters

“The DisCos PIP and Extraordinary tariff review applications were exposed to public hearings and consultations presided over by three commissioners.

“The hearings which were conducted in February 2020 is in line with the business rules of the commission and the Regulations on Procedure for Electricity Tariff Reviews in the Nigerian Electricity Supply Industry,” the document reads.

NERC said the approved CAPEX for Ikeja Electric was N24.38 billion annually from 2021 to 2026, making a total of N121.92 billion.

The commission said EKEDC’s approved CAPEX was N18.75 billion annually from 2021 to 2026, which translates to a total sum of N93.76 billion.

NERC further noted that the funds would be invested in initiatives in the distribution network to upgrade existing network capacity, technological enhancements to reduce outages, and acquisition of tools to enhance network performance.

By Mayowa Oladeji…

Join the conversation

Opinions

Investigations

Sports

Latest Tech News