Electricity Tariff: Nigerians Brace for Potential Hike as 11 Discos Seek Review
- 11 power distribution companies in Nigeria want electricity tariffs to be increased
- The Discos are citing economic conditions and other factors that affect the quality of services
- NERC says it will conduct a case hearing on the application before it makes a rule
PAY ATTENTION: Click “See First” under the “Following” tab to see Legit.ng News on your Facebook News Feed!
A total of 11 Nigerian electricity distribution companies have applied for the review of their electricity tariffs.
The Nigeria Electricity Regulatory Commission, NERC made this known in a notice it described as an application for rate review.
Source: UGC
Legit.ng earlier reported that Discos are meeting with NERC to demand 40% hike approval citing losses from the petrol prices that keep escalating as well as fluctuating exchange rates, among economic conditions.
The development is also a follow-up to the announcement made by some power distribution companies in June informing of the projected hike which was to take effect from July 1, 2023.
PAY ATTENTION: Share your outstanding story with our editors! Please reach us through info@corp.legit.ng!
NERC said action in line with guideline
According to Vanguard, NERC stated that the application by the power firms was in accordance with the rules as it is contained in the Electricity Act 2023.
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.”
It added that the request for rate review is necessary to incorporate changes in macroeconomic parameters as well as other factors that affects quality of the company’s service, operations and sustainability.
NERC also said it is conducting a rate case hearing on the application before it makes a rule as part of the rule-making process by the power conferred by the electricity act.
Calling on participants who wishes to be a part of the proceeding, it stated:
“Any person wishing to participate in the proceedings as an intervenor should forward his/her application to tariff@nerc.gov.ng before the close of business on 20th July 2023.”
The Nigerian populace, already burdened by increased petrol prices, elevated food costs, and a surge in transportation fares resulting from the recent elimination of fuel subsidies, expressed their strong opposition to the proposed tariff escalation, prompting a significant public outcry.
DisCos alert Nigerians on electricity tariff increase from July 1st
Electricity Distribution Companies according to multiple reports said Nigerians will pay more for electricity from July 1st, 2023, legit.ng had earlier reported.
The companies said that the fluctuation in exchange rate caused the tariff to increase.
Meanwhile, it was also reported that the number of electricity customers increased despite plans by the government to raise the tariff.
Source: Legit.ng
