General

Hike in Electricity Tariffs: “we got the nod from NERC”- Discos

NERC

The Electricity distribution companies (Discos) in the Nigeria on Sunday formally accused the Nigerian Electricity Regulatory Commission (NERC), their regulatory agency, of attempting to dissociate itself from the July 1 commencement of a new electricity tariff regime.

The Association of Nigerian Electricity Distributors (ANED), which is the umbrella body of the power distributors stated that the demand that neither the NERC nor the federal government should be mentioned in statements notifying customers of the hike will not work.
In a press release signed by the Executive Director of Research and Advocacy of ANED, Mr. Sunday Oduntan, they stated that in a regulated sector, the distribution companies cannot take a decision about a very critical aspect of the sector like tariff without a nod from NERC.

The ANED signed statement said, “What has happened in recent days is that our regulator is warning us not to mention their name or the federal government in any of our communication about the tariff increase with our customers. This is certainly very unfair.

“Many stakeholders have expressed their concern at the unusual silence of our regulator, NERC on the upcoming increase and it looks like a unilateral decision by the Discos.

“We’ll like to inform Nigerians that tariff review (upward or downwards) is the primary responsibility of NERC as our regulator. We are required to submit our proposals and they have the final say,” the Discos said.

ANED stressed that its members were surprised to receive a letter from NERC warning them not to mention its (NEEC) name or that of the federal government in any public communications on tariffs.

“While it is our obligation to communicate the increase, it is also important for customers to know that it is following standard processes of tariff adjustments in the sector with approvals from NERC and the federal government, the Discos added.
“As Discos, we believe in the rule of law. We will only carry out lawful approval and instructions by our regulator. The proposed increase and the timing of the increase in tariffs was done by NERC.
“It is their statutory responsibility. Discos alone cannot fix and approve electricity tariffs. We are very sensitive to the feelings and yearnings of our customers during this period of COVID-19.”
The Discos stated that this informed their proposal, in conjunction with the National Assembly to suggest a two-month free electricity supply for their residential customers, but said the proposal was not approved by the federal government, citing paucity of funds.
The Discos either stated, “The fact that the action is deliberately made to look unilateral is capable of creating public resistance, effectively setting Discos up to fail”.
All Discos had started communicating the new tariff regime, set to take effect from July 1, 2020, since last week.
The communication, the Discos said, were geared towards enlightening customers about the details of the ‘service-based’ tariff increase to ensure customers are fully aware about how it pertained to them and the supply band they fall under.
“The truth is that we are the public-facing arm of the sector, but what we collect is shared by everybody, including NERC.
“Our interest is in the nurturing of a commercially viable power sector. Political considerations and bickering will certainly not take us there,” the ANED concluded

 

About the author

Joseph Chukwuma Oputa

Joseph Chukwuma Oputa is the Managing Editor of Maslow Businessnews and Physicians News publications published by Maslow Business News Publications, Lagos, Nigeria.

Joseph Oputa is a proud Alumnus of the prestigious Nigerian Institute of Journalism, Lagos and Federal Polytechnic, Bida, Niger State.

Leave a Comment