NERC Orders DisCos To Suspend New Electricity Tariffs For Two Weeks

The Nigerian Electricity Regulatory Commission (NERC) on Tuesday ordered all electricity distribution companies (DisCos) in the country to suspend for two weeks the implementation of the new electricity tariffs that was introduced on September 1.

This directive, according to the commission, is in line with the Federal Government’s agreement with the Labour Union.

The suspension order dated September 28 was signed by the Chairman of the commission, James Momoh, and the Commissioner for Legal, Licensing and Compliance, Dafe Akpeneye.

The commission said the suspension order would last between September 28 and October 11 when it shall cease to have effect.

During the period, NERC said “all tariffs for end-use customers and market obligations of the DISCOs during the 14-day suspension shall be computed on the basis of rates applicable as at 31 August, 2020.”

The order stated that: “On September 1, NERC, pursuant to Sections 32 and 76 of the Electric Power Sector Reform Act, approved the Multi-Year Tariff Order 2020 for the 11 successor electricity distribution companies.”

“The commission said the primary objective of the MYTO 2020 Order was to ensure that rates charged by the DisCos were not only fair to customers, but also sufficient for the DisCos to operate efficiently to recover the full cost of their activities, including a reasonable return on the capital invested in the business.

“Following a joint communiqué issued by the FGN and the Labour unions, the FG agreed that the recent review in electricity tariffs would be suspended by the commission for a period of 14 days to further consultations and finalisation of negotiations between the parties”

The affected DisCos are the Abuja Electricity Distribution Company Plc, Benin Electricity Distribution Company Plc, Enugu Electricity Distribution Company Plc, Ibadan Electricity Distribution Company Plc, Jos Electricity Distribution Company Plc, Kaduna Electricity Distribution Company Plc, Kano Electricity Distribution Company Plc, Eko Electricity Distribution Company Plc, Ikeja Electric Plc, Port Harcourt Electricity Distribution Company Plc and Yola Electricity Distribution Company Plc.

Consequently, NERC said the decision to issue the suspension order was in compliance with Section 33 of EPSRA which states: “the Minister (of Power) may issue general policy directions to the Commission on matters concerning electricity, including directions on overall system planning and coordination, which the Commission shall take into consideration in discharging its functions under section 32(2), provided that such directions are not on conflict with this Act or the Constitution of the Federal Republic of Nigeria.”

It will be recalled that following the approval of the new tariffs by NERC, the 11 DisCos immediately hiked their electricity rates, which has now been in operation for about four weeks.

Nigerians wait to see if and how the DisCos will implement the new directive from NERC directive which is supposed to have commenced from September, 28.