NERC gives states Dec 31 to submit electricity assets valuation

From DENNIS MERNYI, Abuja

The Nigerian Electricity Regulatory Commission (NERC) has given state governments up to December 31, 2012, to submit a detailed valuation of their investments in electricity distribution assets. Speaking at a meeting in Lagos with representatives of Eko Electricity Distribution Company and officials of the Lagos State Government, Dr. Sam Amadi, Chairman/CEO, NERC, said that a framework for the valuation had already been adopted by parties involved.

He said: “In December, a universal valuation was done. All we need to know now is what asset belongs to who.” The National Economic Council had earlier directed NERC to undertake an inventory of all electricity distribution assets associated with local distribution networks. According to statement signed by Maryam Yaya Abubakar, assistant general manager, Media, at the commission, the study was concluded in December 2012. This was done to ascertain the post privatisation structure of the PHCN successor companies.

It would be recalled that the federal government had allocated 40 percent of the shares of these legacy companies to states within the distribution zones and workers of the companies, and these shares will be based on the value of the assets as determined by NERC. On concerns about the assets acquired post-2010, Amadi explained that there will be a framework for investors to pay for these subsequent assets. He added that he fully appreciated that the process was a painstaking one, and that if areas of dispute were thrown up, a tripartite meeting with NERC will be convened to resolve the issues.