The Nigerian Federal Government has announced that the 11 power distribution companies in the country have submitted requests to revise their electricity tariffs.
This revision aims to incorporate changes in the overall economic conditions across the nation.
The Nigeria Electricity Regulatory Commission disclosed this information through a published notice.
The distribution companies, known as Discos, have cited factors such as the quality of service, operational challenges, and the need for sustainability as reasons for seeking a rate review of the electricity tariff hike.
The NERC stated that the Discos’ application for electricity tariff revision aligns with the regulations outlined in the Electricity Act of 2023.
It is worth noting that certain power distribution companies had previously announced a tariff increase in June, with the projected implementation date set for July 1, 2023
Following widespread criticisms and public backlash, the power distribution companies (Discos) retracted their previous announcement of a tariff hike. They clarified that the Nigerian Electricity Regulatory Commission (NERC) had not yet approved the increase. This caused concern among power consumers, particularly those using prepaid meters, who rushed to purchase more electricity units in anticipation of a potential tariff hike.
However, on July 1, 2023, it was observed that the Discos did not implement the tariff increase, indicating that they had not received regulatory approval.
On Thursday, the NERC made an announcement stating that the power firms had submitted applications to review their respective tariffs. The NERC referred to this as an “application for rate review.”
In the notice from the regulator, 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.
