NERC to Review TCN’s CAPEX Exceeding N5bn

Emmanuel Addeh in Abuja

In a new order, the Nigerian Electricity Regulatory Commission (NERC), has said it will henceforth review all capital expenditures by the Transmission Company (TCN) exceeding N5 billion.

The power industry regulator has therefore asked the TCN to file a proposed annual investment plan and revenue requirements, budgets as well as estimates with it by October 31 of the preceding financial year.

The order was tagged: ‘’Mandatory Filing of Annual Opex, Capital Investment Plans and Outcomes of Procurements Conducted by the Transmission Company of Nigeria Plc’’.

 NERC said where the approved capital investment plan is amended by the National Assembly and passed in the Appropriation Act, the amended plan shall be filed with it within 30 days of presidential assent to the Appropriation Act.

The document signed by NERC’s Chairman, Sanusi Garba and Commissioner, Legal, Licensing and Compliance, Dafe Akpeneye also stated that the order for TCN to review existing contracts by above 15 per cent was to ensure value-for-money in the expenditures.

“The condition in TCN’s licence mandating the filing of annual budget/estimate of investments and revenue requirements with the commission is to ensure prudence, transparency, and value-for-money in the yearly expenditures; and ensure adequate provision for cost recovery pursuant to section 96(2)(a) of EPSRA,” NERC stated.

It added that the revenue requirement shall clearly indicate the proposed operating expenses under various headings with sufficient justification.