Electricity tariff may rise as 11 DisCos apply for rate review

The Nigerian Electricity Regulatory Commission (NERC) says eleven distribution companies (DisCos) have applied for a review of tariff rates. 

The commission communicated the development in a notice issued on Friday. 

NERC said the application for tariff review is based on the need to “incorporate changes in macroeconomic indices” and other factors affecting the “quality of service, operations, and sustainability” of DisCos.

“Pursuant to section 116 (1) and 2(a&b) of the Electricity Act 2023 and other extant rules, the eleven (11) successor electricity distribution companies (DisCos) have filed an application for rate review with the Nigerian Electricity Regulatory Commission (NERC or the commission),” the statement reads. 

The commission called on the public and stakeholders to comment on the rate review applications filed by the DisCos.  

“Accordingly, the commission hereby invites the general public for comments on the rate review applications by the distribution licensees,” NERC said. 

“Interested stakeholders are advised to review and take into consideration the excerpts of the rate review applications filed with the commission by the respective licensees. The applications can be accessed on the commission’s website at www.nerc.gov.ng.” 

RATE CASE HEARING

Prior to making a ruling, NERC said it would conduct rate case hearing on the applications. 

“As part of the rule-making process and in the exercise of the powers conferred by the Electricity Act, the commission shall conduct a rate case hearing on the applications prior to making a ruling,” the commission said. 

“Any person wishing to participate in the proceedings as an intervenor should forward his/her application to [email protected] before close of business on 20th July 2023.” 

In June, reports surfaced about a planned 40 percent increase in electricity tariff from July 1, due to rising petrol prices. 

Labour unions had kicked against the plan, with the Nigeria Labour Congress (NLC) calling it “insensitive and callous”.

On its part, the Manufacturers Association of Nigeria (MAN) asked NERC to diversify energy sources, saying a tariff increase would affect the industrial sector and consumers.

The NERC had said it would make known its position on the matter in due time.