Electricity tariff: NERC contemplates upward review from July

The Nigerian Electricity Regulatory Commission (NERC) tinkers on electricity tariff too often than improvement is made in service delivery, even as estimated billing by the DisCos continues unabated despite the increased complaints from the consumers.

In a notice posted on its website on Monday, the NERC said the extraordinary tariff review is as a result of changes in inflation, foreign exchange, gas prices, available generation capacity and capital expenditure.

The commission stated that the review is expected to begin in July.

“The MYTO provides for Minor Reviews (every 6 Months), Major Reviews (every 5 years), and Extraordinary Tariff Reviews in instances where industry parameters have changed from those used in the operating tariffs to such an extent that a review is urgently required to maintain the viability of the industry,” NERC said.

“Further to the above, the Commission held series of Public Hearings and stakeholder consultations in the first quarter of 2020 on the Extraordinary Tariff Review Applications of the eleven (11) electricity distribution companies (“DisCos”) to consider their respective 5-year Performance Improvement Plans (“PIPs”).

“Accordingly, this notice is issued to inform the general public and industry stakeholders of the Commission’s intention to: Conclude the Extraordinary Tariff Review process for the eleven DisCos; Commence the processes for the July 2021 Minor Review of MYTO – 2020 to consider changes in inflation, foreign exchange, gas prices, available generation capacity, and CAPEX required to evacuate and distribute the said available generation capacity in accordance with EPSRA and other extant industry rules.

“This notice is hereby issued in compliance with the provisions of EPSRA, the Business Rules of the Commission and the Regulations on Procedures for Electricity Tariff Reviews in the Nigerian Electricity Supply Industry to solicit for comments from the general public on the proposed reviews.Advertisement

“Stakeholders and the general public are invited to send their comments to the Commission within 21 days from the date of this publication.”

In November 2020, DisCos began implementation of a service-based reflective tariff (SRT) structure nationwide after receiving approval from President Muhammadu Buhari.

A month after, the NERC approved an increase in electricity tariff across the country beginning from January 1 — with the exception of customers who are being served less than an average of 12 hours per day in a given month.