There are indications over the weekend that Nigerians should brace up for more hardship as 11 Electricity Distribution Companies (DisCos) filed an application with the Nigerian Electricity Regulatory Commission (NERC) of their intention to review electricity tariff in their areas of operations.
A document released by the regulator on Friday titled: “Notice of Application for Rate Review By the Electricity Distribution Companies” said 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.
“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,” the regulator said.
Accordingly, the commission invited 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,” it said.
“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.”
It listed the request to participate to include an explanation of the person’s interest in the proceeding and how the party would be affected by the outcome of the application; and a description of the party’s concerns, observations, comments and/or objections to the application.
It said all members of the public and stakeholders are encouraged to send their comments or representations before the close of business on 20 July to the Chairman/CEO of the Nigerian Electricity Regulatory Commission.
The move by the DisCos to review their tariffs, according to analysts, is not unconnected with the recent floating of the naira which has led to a free fall for the local currency against the dollar.
Recall that the idea of rate review, which was mooted last month, had generated anxiety and anger among Nigerians, including professional bodies and manufacturers.
The Nigeria Labour Congress (NLC) at the time warned against the plan, arguing that the massive rise will further pauperise majority of Nigerians.
“We believe that not even these figures are a justification for this reckless proposed tariff increase. The issue of capacity to pay and quality of service delivery is not only germane but superior to any rationalisation by market logic,” the NLC president, Joe Ajaero, had said in a statement.
