FG Licenses 17 New Electricity Distribution Companies to Compete Ikeja Electric, Others
- The Nigeria Electricity Regulatory Commission (NERC) has stated that it has licensed 17 new DisCos
- The Commission revealed that 10 of the newly licensed DisCos have already begun operations
- NERC revealed that the new licensing is meant to boost competition in the industry
The Nigerian government has licensed 17 new Independent Electricity Distribution Networks (IEDN) to provide electricity to consumers in Nigeria.
The Nigeria Electricity Regulatory Commission (NERC) revealed that the 10 newly licensed companies are already functional.
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Eleven DisCos fully privatised
NERC released the 2022 Market Competition Report report on Tuesday, October 3, 2023.
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The Commission said all 11 new DisCos had been privatized, with the ownership and management transferred to private investors.
“Additional private distribution company has been licensed in a specified franchised area. 17 Independent Electricity Distribution Networks’ operators have been licensed, of which 10 are operational as of December 2022,” the report said.
According to NERC, it prepared the market competition report in compliance with Section 24(2) of the Electric Power Sector Reform Act 2004, which authorizes the commission to prepare an annual report for the minister regarding the potential for competition in the Nigerian Electricity Supply Industry.
BusinessDay reports that the commission stated that the report reviews the level of competition in the NESI and assesses the improvement for a transition to a more competitive market.
It also provides recommendations for transition to a more competitive market regarding Section 26 of ESPRA.
NERC orders DisCos to reimburse consumers for prepaid meters
In a recent message to Discos, NERC asked the companies to refund consumers money used to purchase prepaid meters under the Meter Asset Provider (MAP) agreement.
It stated that the reimbursement should be done as consumer units or tokens.
NERC disclosed the information after it hiked the price of prepaid meters and asked electricity companies to set up active customer complaint desks.
It is unclear if the newly licensed DisCos have the resources to cater to the electricity needs of Nigerian consumers who constantly flay electricity supply in Nigeria.
“You May Not Be Able to Recharge”: NERC warns prepaid meter users to update before November 2024
Legit.ng reported that the Nigerian Electricity Regulatory Commission (NERC) has advised all electricity consumers in Nigeria using prepaid meters to update their meters before November 24.
The Commission released the message to prepaid meter users through its official Twitter account on Tuesday, August 22, 2023, urging electricity consumers to take note of the deadline.
Legit.ng earlier reported that 171,107 prepaid meters were installed across Nigeria in the first quarter of 2023, according to NERC's first quarter report.
Source: Legit.ng
