Discos, Government, NERC, Regulation

Stop asking customers to pay for network infrastructure – NERC

Posted: February 7, 2020 at 9:42 am   /   by   /   comments (0)

The electricity sector regulator, NERC, has news for the electricity distribution companies; they should stop asking customers to pay for replacement and installation of network infrastructure such as faulty transformers, substation materials or lines, etc.

According to a release published on the website of the industry regulator, the only scenario where the customer is to bear any cost for network infrastructure, would be based on prior bilateral discussions culminating in an executed project agreement between both parties-the DisCo and customer or customer group- in which cost and mechanism for cost recovery have been fully agreed upon.

The release also condemned the practice of DisCos decommissioning electricity meters that are said to be over 10 years and the demand for 100% settlement of all outstanding debts before they are given new meters even on the newly enacted Meter Asset Providers, MAP.

NERC says no such directives have been approved for the DisCos. Electricity customers were directed to raise alarm and report any DisCo official who acts in the contrary for necessary sanctions.

Industry experts and observers believe that these directives would bring relief to power customers and sanity to DisCos operations as the officials of distribution companies usually compel customers to part with their funds unduly under various guises.

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