Discos Negotiate with Customers Over Hike in Electricity Tariffs

With the commencement of negotiations between the Distribution Companies (Discos) and electricity consumers for a review of electricity tariffs, there is every possibility that a hike in tariffs will take effect next month. The new tariffs will, however, be subject to the approval of the Nigerian Electricity Regulatory Commission(NERC).

Earlier this year, the NERC had authorised the Discos to fix tariffs based on operational costs in their locations, but directed that the tariffs would be subject to approval by the regulatory agency.

The agency also directed the Discos to interface with their customers to arrive at acceptable rates that would be presented for approval. The new tariff regime to be set by the Discos, with the approval of NERC, will commence in July under a new Multi-Year Tariff Order (MYTO).

Chairman of NERC, Dr. Sam Amadi, had said that the regulatory agency had in the past encouraged the Discos to hold consultations with customers on the issue of tariffs, adding that it would henceforth be the duty of the downstream electricity companies to fix the tariffs and not his agency.