To ensure the sustainability of the Nigerian Electricity Supply Industry (NESI), the Nigerian Electricity Regulatory Commission (NERC), the Chairman designate, Engr. Abdullahi Ramat, has announced plans to implement the Power Consumer Assistance Fund (PCAF) model as stipulated in the Electricity Act (EA) 2023.

Ramat made the declaration at his residence at the weekend in Kano State when he played host to the management of Aminu Kano Teaching Hospital (AKTH) led by its Chief Medical Director, Prof. Abdurrahman Sheshe.

PCAF is a Nigerian fund established under the Electricity Act, once activated, will provide tariff relief to underprivileged electricity consumers, replacing indiscriminate subsidies. It will be managed by NERC and funded by government contributions and levies on eligible customers, including industries and large consumers.

A breakdown of key elements of PCAF in the Act: “Section 122 (1) There is established the Power Consumer Assistance Fund (in this Act referred to as “PCAF”) to be used for the purposes specified in subsection (4).

“(2) The Commission shall keep and manage the money and assets of the PCAF and shall handle the procedures for disbursement from the PCAF under this Act.

“(3) The Power Consumer Assistance Fund shall consist of the following capital and assets: the contributions delivered under this section; and any subsidies received from the Federal Government of Nigeria as appropriated by the National Assembly;

“(4) The PCAF shall be used to subsidise underprivileged power consumers as specified by the Minister in consultation with the Commission.

“Section 123 (1) The Commission shall determine the contribution rates to be sent by designated consumers and class of consumers and eligible customers to the PCAF and the subsidies to be disbursed from the PCAF, in accordance with policy directions issued by the Minister, and subject to subsection (2).

“(2) The Commission, while determining the contribution rates shall take into consideration the impact of such rates on eligible customers and consumers who have to assume the burden of such contributions and for this purpose such contributions made by such customers shall be factored into their tariffs.

“Session 124 (1) All consumers and eligible customers including such class of customers under C section 123 (2) of this Act shall make contributions to the PCAF at the rates and for the duration specified by the Commission under section 123 (1).

“(2) In making contributions to the PCAF under subsection (1), eligible customers shall pay their contributions directly to the PCAF set up by the Commission under this Part and other consumer or class of customers liable to make contributions under this Act shall pay their contributions to their distribution licensee and the distribution licensees shall compile such contributions and send them to the PCAF, and all collections and payments shall be made in accordance with the guidelines as may be established by the Commission.

“Session 125 Where the Minister has determined that subsidy payments from the PCAF should be P disbursed to distribution companies for electricity supplied to designated consumers, th or classes of consumers, the Commission shall disburse the subsidy to such distribution companies at the rates and for the durations specified by the Commission.

“Session 126 Any person who fails to pay to the Commission or a distribution licensee, within the F prescribed time, any amount owed under this Part, commits an offence and is liable to a fine not exceeding three times the amount owed.”

The Commission’s Chairma Designate, in his X handle, urged the management of AKTH to cut costs through energy audits, phasing out inefficient equipment, and metering staff quarters and shops.

“Today, I received Prof. Abdurrahman Sheshe –the CMD and the entire management of Aminu Kano Teaching Hospital on a congratulatory visit to my house here in Kano. We discussed how to ensure steady and affordable power for the hospital.

“I explained NERC’s plan to roll out the PCAF (Power Consumer Assistance Fund) under the Electricity Act 2023, which will cushion tariff impacts for schools, hospitals, and low income consumers.

“Meanwhile, I encouraged the management to cut costs through energy audits, phasing out inefficient equipment, and metering staff quarters and shops. On our part at NERC, we will continue engaging with KEDCO to resolve the disputes quickly and prevent future occurrences.

“Our duty remains clear; to protect the rights of consumers while maintaining investor confidence, by fostering an efficient, transparent market structure and investor-friendly ecosystem,” he said.