Electricity Tariff Set To Rise As 11 DisCos Apply For Tariff Review

The Nigerian Electricity Regulatory Commission (NERC) has announced that eleven distribution companies (DisCos) operating in the country have submitted applications for a review of tariff rates.

In a notice issued on Friday, NERC stated that the requests for tariff review were driven by the need to incorporate changes in macroeconomic indices and other factors affecting the quality of service, operations, and sustainability of the DisCos.

The commission, in accordance with the provisions of the Electricity Act 2023 and other applicable rules, has invited the general public and stakeholders to comment on the rate review applications filed by the DisCos.

NERC emphasized the importance of stakeholder participation in the decision-making process and advised interested parties to review the excerpts of the rate review applications, which are available on the commission’s official website at www.nerc.gov.ng.

Before reaching a final decision, NERC plans to conduct rate case hearings to consider the applications thoroughly. The commission intends to exercise its powers conferred by the Electricity Act and ensure a fair and transparent process.

Individuals or organizations wishing to participate in the proceedings as intervenors must submit their applications to tariff@nerc.gov.ng no later than the close of business on July 20, 2023.

This development follows earlier reports in June regarding a proposed 40 percent increase in electricity tariffs starting from July 1.

The planned increase was attributed to rising petrol prices, but it faced significant opposition from labor unions, including the Nigeria Labour Congress (NLC), which labeled it as “insensitive and callous.”

Additionally, the Manufacturers Association of Nigeria (MAN) urged NERC to explore diversified energy sources, citing potential negative effects on the industrial sector and consumers.

NERC has yet to disclose its official position on the proposed tariff increase, stating that it will announce its decision in due course. As the regulatory body overseeing the electricity sector, NERC is responsible for ensuring a balance between the interests of consumers, DisCos, and the overall sustainability of the electricity industry in Nigeria.