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NERC Adopts New Tariff Tool for Mini-Grid Regulation


The Nigerian Electricity Regulatory Commission (NERC) has ad- opted the African Forum for Utility Regulators (AFUR) mini-grid Tariff Tool. In a statement on NERC’s official X page on Friday, it also stated that this is to ensure fair and efficient pricing.

It added that the adoption of this tool would ensure regulatory consistency to the mini-grid subsector as, according to it, the tool would make it easier for project developers to operate across jurisdictions. The tool also is expected to reduce end-user tariffs for mini-grid projects, promoting affordable and reliable electricity access. According to the statement, the tool was developed through a collaboration between the commission and the AFUR as well as other key stakeholders in the energy sector.

It explained that the AFUR mini-grid tariff tool supports the implementation of the amended MiniGrid Regulations 2023 and should enhance the process of determining cost-reflective tariffs for mini-grid projects. It added the tool has new features such as Portfolio Applications which allows developers to register multiple mini-grid sites under a single application. It said that this simplifies processes, fosters efficient regulatory oversight, and benefits from economies of scale, helping to reduce end-user tariffs for mini-grid projects. It was also learnt that the tool is billed to be rolled out across 30 African countries in the coming years.



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