Government, NERC, Regulation

NERC To Invest N5b on Computer System to Monitor Power Operations Nationwide

Posted: September 6, 2022 at 9:45 am   /   by   /   comments (0)

The Nigerian Electricity Regulatory Commission (NERC) says it will invest over N5billion in technology to boost power operations monitoring as well as enhance service delivery to consumers.

Sanusi Garba, chairman, NERC, stated this on Monday during a session with the house of representatives committee on finance on the 2023-2025 medium-term expenditure frame and fiscal strategy paper (MTEF/FSP).

Garba said “in utility regulation, information technology is very important as it is not proper to rely on information provided by licensees.

“So we are investing heavily in technology so we have credible information about quality of service. Without technology, we can not know that a feeder in an area is out for 48 hours and people are in darkness,” Garba said.

“So, over the next few years, we will be investing heavily on technology for data aggregation. In 2021, the budget for computers, not just hardware but the software that drives the machine was N1.5 billion. We are spending N2.5 billion in 2023 and N1 billion in 2025.”

Garba added that NERC “would want to be in a position to see what is happening in all the feeders directly from the commission, not relying on the DISCOs telling you we supplied this and that in so, so location”.

On the revenue projections from 2023 to 2025, Sanusi Garba disclosed that “in 2024, revenues will go up slightly to N23.5 billion and the operating surplus will go down to N1.1 billion and the reason is simply that we are motivated as much as we can to reduce the tariff burden of consumers because of affordability issues”.

“In 2025, revenues go up to N24.7 and the operating surplus goes up to N1.4 billion. I repeat the surpluses are going down because we want to reduce the tariff burden of consumers. Right now, the federal government is subsidizing the tariff to some extent. In the last few years, subsidies were in the region of N5 billion. So, we don’t want to contribute additional burdens and that’s why the surpluses are declining as we go forward,” he said.

Comments (0)

write a comment

Name E-mail Website

comments ( 0 )