The Nigerian Electricity Regulatory Commission (NERC) has unveiled the African Forum for Utility Regulators (AFUR) Mini-Grid Tariff Tool, a groundbreaking initiative set to transform the regulatory landscape for electricity mini-grids in Nigeria. The tool, which becomes mandatory for use starting Monday, December 16, 2024, will be a critical requirement for mini-grid developers seeking permit approvals from the Commission.
This announcement was made through an official statement shared on NERC’s X (formerly Twitter) account. The Commission highlighted that the tariff tool, developed in collaboration with AFUR and other key stakeholders, represents a significant step forward in ensuring fair and efficient electricity pricing for mini-grid projects across Nigeria. By enhancing the process of determining cost-reflective tariffs, the tool aims to strike a balance between affordability for end-users and financial sustainability for developers.
The AFUR Mini-Grid Tariff Tool also aligns with the provisions of the 2023 amended Mini-Grid Regulations, offering innovative features designed to streamline regulatory processes. Among these features is the introduction of Portfolio Applications, which will allow mini-grid developers to register multiple project sites under a single application. This simplifies the approval process and fosters regulatory efficiency, while also enabling economies of scale that could drive down tariffs for consumers.
In addition to its immediate impact in Nigeria, the tool is poised to have a broader influence across Africa. According to NERC, the AFUR Mini-Grid Tariff Tool is expected to be adopted by up to 30 African countries in the coming years. This widespread rollout will provide a uniform framework for mini-grid tariff regulation, making it easier for project developers to navigate diverse regulatory environments while promoting consistency in pricing models across jurisdictions.
NERC emphasized that the tariff tool is now available for download on its official website, encouraging developers and stakeholders to familiarize themselves with its functionalities. The Commission expressed confidence that the initiative will advance the growth of the mini-grid subsector, enhance regulatory oversight, and contribute to broader efforts to improve electricity access in underserved areas of Nigeria.
With this initiative, NERC continues to demonstrate its commitment to fostering innovation and ensuring sustainable energy solutions for all Nigerians. The AFUR Mini-Grid Tariff Tool represents a significant milestone in the country’s journey toward reliable and affordable electricity for its citizens.