- Safiu Kehinde
The Nigerian Electricity Regulatory Commission (NERC) has adopted new mini-grid tariff tool to reduce electricity tariff on end-users.
This was announced in a statement issued by the commission on Friday.
According to the statement, the mini-grid tool was developed by NERC in collaboration with the African Forum for Utility Regulators (AFUR) and other key stakeholders.
The tool which support the implementation of the amended Mini-Grid Regulations 2023, will help enhance the process of cost-reflective tariff for mini-grid projects to ensure fair and efficient pricing.
NERC disclosed that the tool will aid reduction of electricity tariff for end-users as it contained a portfolio application which allows developers to register multiple mini-grid sites under a single application.
This is expected to bring regulatory consistency and make it easier for project developers to operate.
The new tool, which will also be adopted by 30 other African countries in coming years, is expected to take effect from the 16th of December as NERC urged mini-grid developers to use the tool to file permit application at the Commission.
The statement read in part; “The Nigerian Electricity Regulatory Commission (“Commission”) is pleased to announce the formal adoption and release of the African Forum for Utility Regulators (“AFUR”) mini-grid Tariff Tool.
“The tool, developed in collaboration with AFUR and key stakeholders, enhances the process of determining cost-reflective tariffs for mini-grid projects to ensure fair and efficient pricing.
“The tool supports implementing the amended Mini-Grid Regulations 2023 by introducing new features such as Portfolio Applications, which allows developers to register multiple mini-grid sites under a single application.
“This simplifies processes, fosters efficient regulatory oversight, and benefits from economies of scale, helping to reduce end-user tariffs for mini-grid projects.
“Furthermore, the AFUR mini-grid tariff tool is expected to be rolled out across 30 African countries in the coming years, bringing regulatory consistency to the mini-grid subsector and making it easier for project developers to operate across jurisdictions.
“Effective Monday, 16 December 2024, mini-grid developers will be required to use the tool to file permit applications at the Commission.”