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January 17, 2021

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New electricity tariff hike will reflect inflation, forex rates — NERC

3 min read

The Nigerian Electricity Regulatory Commission (NERC) has said the new electricity tariff hike would not affect customers being served less than an average of 12hrs of supply per day.

NERC said some service bands have been adjusted by NGN2.00 to NGN4.00 per kWhr to “reflect the partial impact of inflation & movement in forex”.

The commission made this known in reaction to reports of fresh increase in tariff.

PREMIUM TIMES had on Tuesday reported that the Nigerian government has yet again approved an increase in electricity tariff payable by electricity consumers in Nigeria.

The report said that NERC approved over 50 per cent hike in electricity tariff payable by customers of the 11 Distribution Companies, DisCos.

A Multi Year Tariff Order (MYTO) signed by the new Chairman of NERC, Sanusi Garba, on December 30, 2020, showed that the new tariff increase took effect on January 1, 2021.

The new increment is coming barely two months after the implementation of the controversial hike proposed last year.

The new order supersedes the previous Order NERC/2028/2020, PREMIUM TIMES understands.

Fuzzy details

In Twitter posts, Tuesday afternoon, the NERC said the tariff for customers on service bands D and E with less than an average of 12 hours of supply daily remains frozen.

“The Commission hereby state unequivocally that NO approval has been granted for a 50% tariff increase in the Tariff Order for electricity distribution companies which took effect on January 1, 2021,” the NERC said in its statement.

“On the contrary, the tariff for customers on service bands D & E (customers being served less than an average of 12hrs of supply per day over a period of one month) remains frozen and subsidised in line with the policy direction of the FG.”

However, the NERC claimed further that rates for bands A, B,C, D and E have been “adjusted” by N2.00 to N4.00.

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“In compliance with the provisions of the EPSR Act and the nation’s tariff methodology for biannual minor review, the rates for service bands A, B, C, D and E have been adjusted by NGN2.00 to NGN4.00 per kWhr to reflect the partial impact of inflation & movement in forex,” it said.

ALSO READ: DisCos announce compliance with NERC directive on reduction of tariff

Details of NERC’s position remains fuzzy Tuesday evening.

Efforts to speak to its Assistant General Manager (AGM), Government, External and Industry Relations at NERC, Michael Faloseyi, were fruitless as his known telephone line could not be reached Tuesday evening.

Outrage

Many Nigerians outraged by the development took to Twitter on Tuesday to express their anger.

But NERC in its statement said it remains committed to protecting electricity consumers “from failure to deliver on committed service levels under the service-based tariff regime”.

“Any customer that has been impacted by any rate increases beyond the above provision of the tariff order should report to the commission,” the statement said.

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