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NERC bows to pressure, suspends electricity tariff hike for 3 months

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PowerBy Chris Ochayi

Following pressures being mounted by the public, the Nigerian Electricity Regulatory Commission, NERC, Tuesday announced the suspension of electricity tariff hike expected to commence on April 1, 2020 to next three months, June 30, 2020.

NERC in an Order on the transition to cost reflective tariffs in the Nigerian Electricity Supply Industry (NESI) tagged /198/2020, signed by the NERC Chairman, Prof. James Momoh and the NERC Commissioner for Legal, Licencing and Compliance, Dafe Akpeneye yesterday said it was due to global effects of the Coronavirus (COVID-19) and its impact on the average Nigerian.

“There shall be no increase in tariffs of end-use customers on 1 April 2020. This Order shall take effect from 1 April 2020 and shall cease to have effect on the issuance of a new Order by the NERC.”

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The Commission which had planned the hike for today, said it is aware of the adverse effects of the COVID-19 pandemic on the global economy and its impact on the average Nigerian.

It noted that the previous Order on the December 2019 minor review of the Multi Year Tariff Order (MYTO) 2015 and the Minimum Remittance Order (MRO) for 2020 “shall remain in force until 30 June 2020 when a new MRO shall be issued.”

NERC said the 11 DISCs  submitted their Performance Improvement Plans (PIPs) and also filed applications for an extraordinary tariff review with public hearings held from 25 February to 9 March for the DISCOs..

There was also a hearing on providing tariff for ancillary services for the Transmission Company of Nigeria (TCN) on the national grid.

NERC said the stakeholders’ views show consumers are willing to pay appropriate rates for services rendered by the DisCos but must be of quality and with adequate metering.

It also said the COVID-19 pandemic has obstructed importation of components for local meter assembly to supply consumers under the Meter Assets Provider (MAP) Regulation, and that it was discussing with MAP and DISCOs to review the expectations.

NERC then gave the DISCOs 21 days from today, to submit new PIPs on how they can recover their costs prudently with marginal profit by 30 June 2021 especially on how customers will be guaranteed improved services.

The DISCOs were also directed to provide smart meters for their 11 kilovolts (kV) and 33kV feeders by 30 June 2020 so they can send real time data to the Commission.

Vanguard

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