NERC Suggests Measures to Prevent MDAs’ Electricity Debt

The Nigerian Electricity Regulatory Commission (NERC) has said that it has made proposals to the National Assembly on how to prevent the accumulation of future electricity debts by government ministries, department and agencies (MDAs), Leadership reports.

Speaking during a workshop in Abuja, NERC chairman, Dr Sam Amadi explained that the strategy involved adopting the earmark strategy practised in the United States which stipulates that each MDA’s budget have clear earmarks for paying electricity bills with conditions that the money cannot be used for anything else.

Amadi also disclosed that the commission has discounted electricity bills owed by MDAs from distribution companies (DISCOs) collection losses in the new tariff following some payment commitments. He said that the DISCOs have computed and submitted what they are owed by the various MDAs, adding that verification would be done on the figures following which payment plans would be agreed upon with the DISCOs.

 

Source: Energy Mix Report