Sam Amadi
Chineme Okafor
The Nigerian Electricity Regulatory Commission (NERC) has said requests for budgetary provisions for the privatised successor companies of the Power Holding Company of Nigeria (PHCN) in the 2013 financial year by the National Assembly was unfounded.
NERC stated yesterday in Abuja, that such budgetary demands and justification for the Federal Government to fund the privatised electricity distribution companies beyond 2012 were not necessary considering the existence of the new Multi Year Tariff Order (MYTO-2) methodology.
The commission said in a statement from its Assistant General Manager, Media, Maryam Abubakar, that the tariff methodology which was currently in use had provided for the distribution companies to be self-sustaining, stating that it could confirm that some distribution companies were actually meeting up with its financial obligations.
The House of Representatives had recently decried the lack of budgetary provisions for privatised PHCN successor companies in the 2013 budget.
The House argued that additional funding for these electricity companies should be made despite the ongoing privatisation process which would see new owners take over the companies by mid-2013.
The House argued that additional funding for these electricity companies should be made despite the ongoing privatisation process which would see new owners take over the companies by mid-2013.
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