The document discusses the Multi-Year Tariff Order (MYTO) framework used in Nigeria to regulate electricity distribution companies and make them attractive investments. Key points:
1) MYTO is designed to balance investor returns with consumer welfare by allowing distribution companies to recover efficient costs and achieve a fair return on investment.
2) The 2013 major review of MYTO brought tariff changes forward to address economic realities and policies.
3) MYTO uses cost caps and incentives to push companies to incur costs below budgets and earn rewards for better performance, improving their bankability for private investors.
4) Successful privatization of distribution companies is key to growth but will require strong financial guarantees, supported by MYTO's
Privatised electricity distribution companies a bankable prospect by eyo ekpo
1. Privatised Electricity Distribution Companies: A Bankable Prospect? A Presentation at the Bankers ’ Committee/BPE Technical Workshop on Nigerian Power Sector Reform Eyo O. Ekpo Commissioner, Market Competition & Rates, NERC Abuja, 25th May 2011
10. Conclusion Discos Regulation Tariffs Investment 1 2 3 4 Discos collect all the revenue generated within the industry Successful privatisation and competent, nuanced regulation, especially of TCN and Discos, will bring about the ultimate goal of a responsive, competitive and bankable market NERC realises that sensible tariffs are the single most important element in creating such a market and driving sustained investment into it NERC is determined that MYTO will incentivise investment and will secure stakeholder buy-in across the board
11. Eyo O. Ekpo Market Competition and Rates, NERC Mobile: (+234) (0) 803 400 5858 E-mail: eekpo@nercng.org THANK YOU Website: www.nercng.org
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