Tariff increase not for low-income areas, NERC clarifies

The Nigerian Electricity Regulatory Commission (NERC) says the new electricity tariff increase will not affect low-income areas with lesser energy supply.

The commission was reacting to reports of the new increase in tariff from January 1.

In a series of Twitter post, the NERC said the tariff for customers on service bands D and E with less than an average of 12 hours of supply daily remains frozen.

“The Commission hereby state unequivocally that NO approval has been granted for a 50% tariff increase in the Tariff Order for electricity distribution companies which took effect on January 1, 2021,” the NERC said.

“On the contrary, the tariff for customers on service bands D & E (customers being served less than an average of 12hrs of supply per day over a period of one month) remains frozen and subsidised in line with the policy direction of the FG.

“In compliance with the provisions of the EPSR Act and the nation’s tariff methodology for biannual minor review, the rates for service bands A, B, C, D and E have been adjusted by NGN2.00 to NGN4.00 per kWhr to reflect the partial impact of inflation & movement in forex.

“The Commission remains committed to protecting electricity consumers from failure to deliver on committed service levels under the service-based tariff regime.

“Any customer that has been impacted by any rate increases beyond the above provision of the tariff Order should report to the Commission.”

2. The Commission hereby state unequivocally that NO approval has been granted for a 50% tariff increase in the Tariff Order for electricity distribution companies which took effect on January 1, 2021.

— NERC Nigeria (@NERCNG) January 5, 2021

The service-based reflective tariff (SRT) model approved in 2020 had exempted residential areas classified as “poor”.