Journalism in the service of society

Electricity tariff hike likely as Discos apply for rate review

THE Federal Government declared yesterday that eleven power distribution firms in Nigeria had requested a review of their respective electricity rates in order to take into account changes in the macroeconomic parameters across the entire nation.

The Nigeria Electricity Regulatory Commission published a notice that made this information public. Additionally, the Discos indicated that the operations, sustainability, and service quality of the companies were the main drivers behind the tariff review.

The NERC stated in the notice, acquired by journalists in Abuja, that the power companies’ request for a rate review was in accordance with the guidelines set forth in the Electricity Act 2023.

Recall that several firms that distribute electricity indicated in June that there will be a rate increase that would go into effect on July 1st, 2023.

The Discos, however, backtracked the next day after widespread criticisms, as they stated that the Nigerian Electricity Regulatory Commission had yet to approve the hike.The development caused apprehension among power users at the time, as many prepaid consumers rushed to buy more electricity units in their meters, while anticipating a possible hike in tariff.

On July 1, 2023, it was noted that the Discos did not raise the tariff, indicating that they had not yet received the power sector regulator’s consent.

But yesterday the NERC announced that the power firms had applied for a review of their respective tariffs, though it described it as an application for rate review.

In the notice from the regulator, it said, “Pursuant to Section 116 (1) and 2(a&b) of the Electricity Act 2023 and other extant rules, the 11 successor electricity distribution companies have filed an application for rate review with the Nigerian Electricity Regulatory Commission.

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