Taking into consideration the adjusting macroeconomic indicators across Nigeria, the federal government of Nigeria has announced that the 11 power distribution companies have sought a review of their electricity tariffs.
The Nigeria Electricity Regulatory Commission (NERC) officially revealed this information through a notice published on Thursday.
Additionally, the Discos cited factors impacting the quality of service, operational aspects, and the long-term viability of their companies as the basis for requesting the rate review, as stated by the Nigeria Electricity Regulatory Commission.
In accordance with the Electricity Act of 2023, the notice confirmed that the power firms’ application for rate review follows the established rules.
A notable point to remember is that in June, select power distribution companies declared their forthcoming tariff increment, initially planned to be implemented starting from July 1, 2023.
Read also: Total Blackout Threat As Nigerian Electricity Workers Threaten Strike
In light of extensive public criticism, the Discos swiftly retracted their initial announcement the next day, clarifying that the Nigerian Electricity Regulatory Commission had not yet given its approval for the tariff hike.
The development sparked unease among power users, causing a rush among prepaid consumers to procure additional electricity units for their meters, preparing for a potential tariff increase.
It was noticeable on July 1, 2023, that the Discos had not raised the tariff, suggesting that they were still awaiting approval from the power sector regulator.
The NERC remarked, ‘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.’
The NERC, on Thursday, made it known that the power firms had submitted applications for the review of their tariffs, characterizing it as an application for rate review. If approved there is a possibility of a surge in the price of electricity tariffs.