DisCos Intensify Push For Tariff Increase, As NERC Receives Application For Approval, Invites Stakeholders’ Comments

By CLEMENT NWOJI, Abuja

Nigeria’s eleven Electricity Distribution Companies (DisCos) are bent on pushing for rate review by the power sector regulatory body, Nigerian Electricity Regulatory Commission (NERC) as they had all applied for increases.

NERC confirmed the DisCos’ applications Friday, just 14 days after the DisCos had initially unilaterally attempted to effect increase in price units(Kwh) of electricity as from July 1, 2023,  but was resisted and prevented by public outcry which was further given impetus by organised labour under the aegis of the Nigeria Labour Congress (NLC) led by Comrade Joe Ajaero.

Though not listed, OPTIMUM TIMES recall that the eleven Electricity Distribution Companies include: Abuja Electricity Distribution Plc (AEDC), Benin Electricity Distribution Company, Eko Electricity Distribution Plc (EKEDC), Enugu Electricity Distribution Plc (EEDC), Ibadan Electricity Distribution Plc (IBEDC), Ikeja Electricity Distribution Company (IKEDC), Jos Electricity Distribution Plc (JEDC), Kaduna Electricity Distribution Plc (KAEDCO), Kano Electricity Distribution Plc (KEDC), Port Harcourt Electricity Distribution Plc (PHEDC) and Yola Electricity Distribution Company Plc (YEDC).

The outcry against electricity tariff increase is against the backdrop of floating of the Naira and removal of oil subsidy which triggered off high cost of goods and services and compounded by epileptic power supply by the DisCos.

In its intervention Friday, NERC requested consumers and stakeholders to come up with their inputs or comments for consideration taking into account the reasons given by the DisCos in their application for rate review.

“The Commission hereby invites
the general public for comments on the rate review applications by the distribution licensees. Interested stakeholders are advised to review and take into consideration the excerpts of the Rate Review Applications filed with the Commission by the respective licensees”, it stated.

The DisCos which quickly made a U-turn in June after initial notification of increase in electricity tariff effective July 1, include the Abuja Electricity Distribution Company (AEDC). In its reversal public notice,  AEDC stated “Dear Esteemed Customers, Please disregard the communication circulating in the media regarding the review of electricity tariffs. Be informed that no approval for such increments has been received.We regret any inconvenience.”

However, it had before then notified electricity consumers within its franchise areas of Kogi, Niger, Nasarawa states and FCT that it would effect tariff increase by July 1.

Part of the notification reads: “Effective July 1st 2023, please be informed that there will be an upward review to the electricity tariff influenced by the fluctuating exchange rate.

“Under the MYTO 2022 guidelines, the previously set exchange rate of N441/$1 may now be revised to approximately N750/$1 which will have an impact on the tariffs associated with your electricity consumption.

“For customers within band C, with supply hours ranging from 12 to 16 per day, the new base tariff is expected to be N100 per kWh while Bands A with (20 hours and above) and B (16 to 20 hours) will experience comparatively higher tariffs.

“For customers with a prepaid meter, we encourage you to consider purchasing bulk energy units before the end of this month as this will allow you take advantage of the current rates and potentially make savings before the new tariffs come into effect. For those on post-paid (estimated) billing, a significant increment is imminent in your monthly billing, starting from August.”

The DisCos’ application for rate review is coming even as Consumers complain about inefficient, inadequate and outdated distribution networks resulting oftentimes to epileptic power supply occasioned by lack of investments in distribution infrastructure by the core investors.

According to NERC in its notice of application for rate review by the 11 electricity distribution companies,
“Pursuant to Section 116 (1) and 2(a&b) of the Electricity Act 2023 and other extant rules, the eleven (11) successor electricity distribution companies (“DisCos”) have filed an application for rate review with the Nigerian Electricity Regulatory Commission (“NERC” or the “Commission”).

“The request for rate review is premised on the need to incorporate changes in macroeconomic parameters and other factors affecting the quality of service, operations and sustainability of the companies.

“Accordingly, the Commission hereby invites the general public for comments on the rate review applications by the distribution licensees. Interested stakeholders are advised to review and take into consideration the excerpts of the Rate Review Applications filed with the Commission by the respective licensees. The applications can be accessed on the Commission’s website at www.nerc.gov.ng.

“As part of the rule-making process and in the exercise of the powers conferred by the Electricity Act, the Commission shall conduct a Rate Case Hearing on the applications prior to making a ruling.

“Any person wishing to participate in the proceedings as an intervenor should forward his/her application to tariff@nerc.gov.ng before close of business on 20 July 2023. The Request to Participate shall include the following: An explanation of the person’s interest in the proceeding and how the party would be affected by the outcome of the Application; and A description of the party’s concerns, observations comments and/or objections to the application.”