The new electricity tariffs introduced by the Nigerian Electricity Regulatory Commission (NERC) will be effective from April 1, the power distribution companies (DisCos) in Nigeria have disclosed.
Why NERC is increasing tariff: The increase in price is a follow-up to the charges set in 2015. The tariff increase would cater for revenue shortfalls in the sector. The order was issued to the 11 DisCos on December 31, 2019.
The Minister of Power, Saleh Mamman, had said in a Nairametrics report that the hike was inevitable due to the rising cost of electricity generation in Nigeria. According to him, improvement in electricity supply necessitated the need to increase the electricity tariffs.
Mamma said electricity supply was being affected by cost-ineffective tariff and that it was a drawback on the operation of the energy distributors. So, if electricity supply was to improve, there’s a need for procurement of needed equipment that would reflect on the electricity tariff.
But the decision to increase tariff hasn’t sit well with Nigerians, as some of them have been condemning the directive which came at a time cost of living was projected to be high before 2020 ends.
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NERC had said the action was merely a review rather than an outright increase in electricity price.
The Association of Nigerian Electricity Distributors, the umbrella body for DisCos, has said that there is no going back on the directive the body is looking to implement.
“The Tariffs shall remain the same as they presently are (i.e. 2015 levels) until April 1, 2020, when there will be a slight increment to cater for tariff shortfalls which shall be gradually passed on to the consumer until this is fully completed by the end of 2021,” The association said in a Punch report.
It added that, “In view of the foregoing, we state emphatically that there shall be no change or increase in the existing electricity tariff until April 1, 2020, when the new adjusted tariffs shall begin to gradually reflect the dynamism of our macro-economy.”
DisCos carrying out the order: The directive was issued to Abuja Electricity Distribution Company; Benin Electricity Distribution Company; Enugu Electricity Distribution Company; Eko Electricity Distribution Company; Ibadan Electricity Distribution Company; Ikeja Electricity Distribution Company; Jos Electricity Distribution Company; Kaduna Electricity Distribution Company; Kano Electricity Distribution Company; Port Harcourt Electricity Distribution Company, and Yola Electricity Distribution Company.