The Nigerian Electricity Regulatory Commission on Thursday released an order seeking to remove tariff-related liabilities from the books of power distribution companies.
In its order, NERC/196/2020, the commission stated, “This order seeks to resolve the continued accumulation of future tariff-related shortfalls during the transition to cost-reflective tariffs and to prevent the accrual of new liabilities in the financial records of Discos.”
The commission also ordered the Discos to fully settle all invoices received from the Nigeria Bulk Electricity Trading Company.
Nigeria has 11 Discos and the NERC stated that its order on the settlement of invoices was in line with the applicable tariff shortfall and the 2019 Minor Review of the 2015 Multi Year Tariff Order and Minimum Remittance Order for the year 2020.
It stated that the unpaid tariff-related portion of the NBET invoice would temporarily remain in the books of the Discos as a liability until the same was paid to Gencos from the Payment Assurance Facility or other funding sources in the PSRP financing plan.
