NERC Orders DisCos To Suspend Tariffs Hike For Two Weeks

The Nigerian Electricity Regulatory Commission (NERC) has ordered ten electricity Distribution Companies (DisCos) to suspend implementation of Multi Year Tariff Order 2020, which approval was earlier granted to it by the commission.

This follows Federal Government suspension of increase in electricity tariffs for a period of two weeks due to negotiations with organised Labour under the aegis of the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) on Sunday night to avert nationwide strike by Labour effective Monday , 28 September, 2020 due to arbitrary increase in pump price of fuel and hike in electricity tariffs.

The order suspending the tariffs implementation was jointly signed by Prof. James A. Momoh, NERC Chairman and Dafe C A kpeneye, Commissioner for Legal, Licensing & Compliance.

In “NERC ORDER No. NERC/209/2020 IN THE MATTER OF THE 14 – DAY SUSPENSION OF THE EXTRA ORDINARY
REVIEW OF MULTI YEAR TARIFF ORDER 2020 FOR SUCCESSOR ELECTRICITY
DISTRIBUTION LICENSEES
TITLE”, the Commission cited that:

“Following a joint communique issued by the Federal Government of Nigeria (“FGN”) and the labour unions, the FGN 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.

“Section 33 of EPSRA provides that “he Minister 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

“The Secretary to the Government of the Federation, Minister of Power and other Ministers were part of the FGN team that issued the communique which the Commission duly accepts as a general policy direction in accordance with
section 33 of EPSRA.”

NERC further stated that “The Commission hereby suspends for a period of 14-days, with effect from 28 September 2020 to 11 October 2020, the MULTI YEAR TARIFF ORDER 2020 that was issued to the following DisCos:
a. Abuja Electricity Distribution Company Plc
b. Benin Electricity Distribution Company Plc
C. Enugu Electricity Distribution Company Plc
d. Ibadan Electricity Distribution Company Plc
E. Jos Electricity Distribution Company Plc
f. Kaduna Electricity Distribution Company Plc
g Kano Electricity Distribution Company Plc
h. Eko Electricity Distribution Company Plc
I. Ikeja Electric Plc
J. Port Harcourt Electricity Distribution Company Plc
k. Yola Electricity Distribution Company Plc

It also maintained that “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.

“This Order shall be effective from 28th September 2020
Dated this 28th day of September 2020”