NERC LogoIn an effort to reverse the age-long rot in the power sector and position it for efficiency, the Nigeria Electricity Regulatory Commission (NERC) has issued a list of expectations and performance requirements to the new owners of the distribution and generation companies.

The commission which noted that there is currently low generation capacity level in the electricity industry, said low energy use intensity equates to energy poverty, leading to constrained access to cheap and secure power supply, low national economic growth and low per capita GDP growth.

The regulator also identified the lack of adequate fuel mix diversity which has resulted in overdependence on gas-fired power plants and power evacuation constraints as part of the challenges facing the sector.

However, NERC in a presentation entitled “New Owners And NERC’s Expectations,” made available to LEADERSHIP, says its expects strict adherence to its various codes and regulations such as grid code, distribution code, metering code, market rules, MYTO methodology and 2012 tariff orders amongst others, as the way forward.

On market rules, compliance with interim rules during the interim period of between November 1, 2013 and February 28, 2014, is expected of the companies. They are also expected to maintain agreement on Disco baseline remittance, collection accounts escrow arrangement, loss reduction and metering, among others.