NERC orders DisCos to increase electricity tariffs

Isola Moses

Against the backdrop of the continuous clamour for marked improvements in electricity generation, transmission, distribution and supply, the Nigerian electricity consumers yet are expected to pay more for typically pervasive darkness across the country.

This development follows the latest directive the Nigerian Electricity Regulatory Commission (NERC) issued to the 11 Electricity Distribution Companies (DisCos) to raise electricity tariffs from January 1, 2020.

Besides, agency report indicated that power supply has apparently “dropped from 3,993.65 megawatts, MW, to 3,608 MW”, due to “inadequate gas, poor transmission infrastructure and limited distribution facilities.”

ConsumerConnect learnt that “James Momoh, Chairman of NERC, and Dafe Akpeneye, the Commission’s Secretary, gave the directive in a recent memo to the DisCos.

The Commission reportedly published the new tariffs for the different DisCos and categories of customers on its Web site via an order dated December 31.

According the order, “the new tariff was reached based on data obtained from the Central Bank of Nigeria (CBN), National Bureau of Statistics (NBS) and the US rate of inflation.

“Other orders issued on the subject matter, and shall take effect from 1st January, 2020, and shall have an effect on the issuance of a new Minor Review Order or an Extraordinary Tariff Review Order by the NERC,” the source said.

In the paper, “Abuja Electricity Distribution Company (AEDC) residential customers R3 that were paying N27.20 per unit will now pay N47.09.

“For the Ikeja Electricity Distribution Company (IKEDC) customers, the R3 category paying N26.50 per unit will now pay N36.92 per unit.

“An increase was also recorded in the commercial customers C3 category that paid N24.63 per unit in 2015. They are now expected to pay N38.14 per unit.”

Others include “the industrial customers of the IKEDC D3 category who paid N25.82 per unit, the charges have been increased to N35.85 per unit.

“Enugu Electricity Distribution Company residential (R3) customers who were paying N27.11 per unit in 2015 are to now pay N48.12 per unit.

Meanwhile, the NERC has also directed that “all DisCos are obligated to settle their market invoices in full as adjusted and netted off by the applicable tariff shortfall.”

In determining compliance with the minimum remittance threshold in this Order, the electricity regulatory agency states it “shall consider verified receivables from MDAs (Ministries, Departments and Agencies) for the settlement period and DisCos’ historical collection efficiency for MDAs.

“The Commission shall hold the TCN responsible for deviation from the economic dispatch Order that adversely impacts the base weighted average cost of the wholesale of energy,” the paper disclosed.

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