Eleven electricity distribution companies have applied for a review of rates with the Nigerian Electricity Regulatory Agency (NERC).
This was revealed in a statement by the NERC on Friday.
According to the statement, the eleven successor discos application is hinged on the need to ensure the electricity rate is in sync with current macroeconomic dynamics.
The statement reads, “Pursuant to Section 116 (1) and 2(a&b) of the Electricity Act 2023 and other extant rules, the eleven (11) successor electricity distribution companies (“DisCos”) have filed an application for rate review with the Nigerian Electricity Regulatory Commission (“NERC” or the “Commission”).”
“The request for rate review is premised on the need to incorporate changes in macroeconomic parameters and other factors affecting the quality of service, operations and sustainability of the companies.”
NERC calls for comments from stakeholders and the public
The statement also called on members of the public and stakeholders to add their comments o the rate review applications filed by the DisCos.
The statement further reads, “Accordingly, the Commission hereby invites the general public for comments on the rate review applications by the distribution licensees.
“Interested stakeholders are advised to review and take into consideration the excerpts of the Rate Review Applications filed with the Commission by the respective licensees. The applications can be accessed on the Commission’s website at www.nerc.gov.ng.”
NERC to conduct rate case hearing before taking a decision
Furthermore, the Nigeria Electricity Regulatory Commission will conduct a rate case hearing and extends participation to members of the public who are interested.
According to the statement, “As part of the rule-making process and in the exercise of the powers conferred by the Electricity Act, the Commission shall conduct a Rate Case Hearing on the applications prior to making a ruling.
“Any person wishing to participate in the proceedings as an intervenor should forward his/her application to tariff@nerc.gov.ng before the close of business on 20th July 2023.”
Backstory
In June, a 40% hike in electricity tariff was mooted to begin on July 1. However, pressure from the NLC made the distribution companies shelve the plan.
The unification of the forex market by the CBN and the removal of fuel subsidies by the President has destabilised markets in different sectors of the economy.
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