The Nigerian Electricity Regulatory Commission (NERC) announced it has approved the sum of N121.92 billion for Ikeja Electric Plc infrastructure upgrade for the next 5 years and also N93.76 billion for Eko Electricity Distribution Company (EKEDC) infrastructure upgrades within the same period.
The NERC revealed this in its Performance Improvement Plan (PIP) and Extraordinary Tariff Review Application which was released on Monday and signed by 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.
The upgrades would be in the areas of existing network capacity, technological enhancements to reduce outages and acquisition of tools to improve network performance.