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 Eko Electricity Distribution Company (EKEDC) to upgrade infrastructure across its network within the same period.
The commission made this known in the Performance Improvement Plan (PIP) and Extraordinary Tariff Review Application for both DisCos which was obtained on Monday by the News Agency of Nigeria (NAN) in Lagos.
NAN reports that the documents were signed jointly 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.
It said the purpose was to boost power supply and distribution by the Electricity Distribution Companies to their customers.
The commission said the DisCos PIP and Extraordinary tariff review applications were exposed to public hearings and consultations presided over by three commissioners.
According to NERC, 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.
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 said the funds would be invested on initiatives in the distribution network to upgrade existing network capacity, technological enhancements to reduce outages and acquisition of tools to enhance network performance.
The commission said it included installation of metering systems to capture all electrical parameters involved in commercial transactions with the Nigerian Bulk Electricity Trading Company and the Transmission Company of Nigeria.
(NAN)