NERC Faults Report On Electricity Tariff Review, Allays Consumers Fear

The Nigerian Electricity Regulatory Commission (NERC) has faulted reports making rounds which suggested that it recently increased electricity tariffs.

The Chairman of the Commission, Engr. Sanusi Garba explained that what was cited as new tariffs review was effected since December, 2021 and was already in operation since January 1, 2022. He spoke against the backdrop of reports on Thursday suggesting electricity tariff hike.

The tariff review, otherwise known as the Multi-Year Tariff Order (MYTO) adjustment determines cost of electricity chargeable by various power Distribution Companies (DisCos) and payable by electricity consumers. The review constitutes one of the major regulatory mandates of NERC.

Speaking during a press briefing prompted by the need to give clarifications and allay fears of electricity consumers of possible hike in electricity bills soon, the NERC Chairman said: I want on behalf of the Commission to tell you that we have not done any rate review and there is no indication any DisCo increasing rate.

“Yes, it is one of our functions to approve any application (request for increase in rate) from DisCos but we have not done any.

“There was rate review in December, 2021 and there is no reason for anything done in 2021, becoming finally news today. The rate increase was not done today and it tend to be misleading in public perception.

“If in the last four weeks or there about, you have noticed any rate increase, that will be understandable. But presently, there is none.”

He explained that electricity rate review is not done overnight but it involves processes. “We make a publication of notice to that effect when we want to make rate review. It is followed by stakeholders consultations and review of the stakeholders’ inputs before a major rate review is done”, he explained.

Engr. Garba further added that rate review is not always upwards but at times, it can also be down wards review