The Nigerian Electricity Regulatory Commission (NERC) has announced plans to implement the Power Consumer Assistance Fund (PCAF) as provided under the Electricity Act (EA) 2023 to strengthen the Nigerian Electricity Supply Industry (NESI).
NERC’s Acting Chairman, Engineer Abdullahi Ramat, made this known in Kano when he received the management of Aminu Kano Teaching Hospital (AKTH), led by its Chief Medical Director, Professor Abdurrahman Sheshe.
Tribune Online reports that PCAF is a fund created under the Electricity Act to provide tariff relief for low-income electricity consumers, replacing broad-based subsidies. The fund will be managed by NERC and financed through government contributions and levies from eligible customers, including industries and large power users.
In a post on his X handle, Ramat advised AKTH’s management to reduce costs through energy audits, replace inefficient equipment, and install meters in staff quarters and shops.
He said the Commission remains committed to protecting consumer rights while ensuring investor confidence through a transparent and efficient market structure.
Ramat also confirmed plans to roll out the PCAF under the Electricity Act, noting that it will help cushion the impact of tariffs for schools, hospitals, and low-income consumers.
“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.
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).
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“(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 disbursed to distribution companies for electricity supplied to designated consumers, 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 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 PCAF, established under Sections 122–126 of the Electricity Act, will be used to subsidize electricity for underprivileged consumers. NERC will manage and disburse the funds in line with federal policy, with contributions coming from eligible customers and government allocations.
Failure to remit contributions or payments to the Fund within the specified period attracts penalties, including fines up to three times the amount owed, as stated in the Act.
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