Establishment and Purpose

• Creation: The PCAF is established to provide subsidies to underprivileged power consumers.
• Management: The Commission manages the money and assets of the PCAF and oversees the disbursement procedures.

Composition of the Fund

• Sources: The PCAF consists of:
• Contributions from designated consumers and eligible customers.
• Subsidies from the Federal Government of Nigeria appropriated by the National Assembly.

Contribution and Subsidy Determination

• Contribution Rates: The Commission sets the contribution rates, considering the impact on consumers and factoring these into tariffs.
• Disbursement of Subsidies: The Commission also determines the subsidies to be provided from the PCAF.

Consumer and Eligible Customer Contributions

• Payment Process:
  • Consumers and eligible customers pay contributions directly to the PCAF or through their distribution licensee.
  • Distribution licensees compile contributions and send them to the PCAF according to the Commission's guidelines.

Disbursement of Subsidies

• Distribution Companies: Subsidies from the PCAF are disbursed to distribution companies as determined by the Minister, at specified rates and durations.

Penalties for Non-Payment

• Fines for Non-Payment: Failure to pay the required contributions results in a fine up to three times the amount owed.