The NERC Chairman, Dr Sam Amadi, refuted the claims on Tuesday when he appeared before the House of Representatives Committee on Power investigating the alleged plan by the commission to make the payment.
Declaring the public investigation open, the Deputy Speaker, Yusuf Lasun, said there was an urgent need to address a lot of issues in the power sector.
The Chairman of the committee, Honourable Daniel Asuquo, listed some of the objectives of the hearing.
The committee is also probing the power sector to understand the challenges faced by major players in the sector and how the parliament can help address them.
The Minister of Power, Works and Housing, Mr Babatunde Fashola, also made a brief appearance before the committee.
Also in attendance were representatives of regulatory agencies, electricity distribution companies and power generating companies.
The hearing is expected to continue on Wednesday.