NERC orders TCN to file proposed annual investment plan, revenue requirements

The Nigerian Electricity Regulatory Commission (NERC) has ordered the Transmission Company of Nigeria (TCN) to file its annual operating expenditure, capital investment plans and procurement.

The commission said the reporting requirement and review process were issued to ensure that the Company complies with the regulatory principle of optimising the utilisation of the limited funding available for operating and capital expenditure with beneficial impact on the market and end-user customers.

It conveyed this in an Order No: NERC/2023/002 titled: “Filing Of Annual OPEX, Capital Investment Plans Outcomes Of Procurement Conducted By The Transmission Company OF Nigeria PLC,” obtained by the Nigerian Tribune in Abuja.

It said the proposed annual investment plan and revenue requirements/budgets/estimates with the Commission should be filed by 31 October of the preceding financial year for review and approval.

“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 the Commission within 30 (thirty) days of presidential ascent to the Appropriation Act,” it added.

It further stated that all capital expenditure by TCN in excess of a threshold of NGN5,000,000,000 or a revision of existing contract sum in excess of 15 per cent shall be subjected to prior review by the Commission.

According to the Regulator, the Order seeks to ensure that capital investment projects undertaken in the Nigerian Electricity Supply Industry (NESI) are fully aligned with the Performance Improvement Plan (PIP) of the TCN and DisCos.

In addition, it said the Order, apart from ensuring optimal allocation of limited resources available for capital expenditure in TCN’s procurement processes, will bring about prudency and value for money for all network development projects by TCN and DisCos.

It said the order took effect from 1 July 2023 and may be amended or revoked by subsequent Orders issued by the Nigerian Electricity Regulatory Commission.