The Nigerian Electricity Regulatory Commission (NERC) has ordered the suspension of new electricity tariffs that were recently proposed and which have kicked up a storm among the citizenry.
According to reports, the new electricity tariff plan has been suspended for two weeks, pending a possible review amidst a storm of protests from Nigerians. The NERC has also ordered the 11 Electricity Distribution Companies (DISCOs) in the country to suspend the tariff increases for 14 days, which had been implemented on September 1st.
The suspension, dated 28 September in a memorandum with order No. NERC/209/2020, was signed by the Chairman of the commission, James Momoh and the Commissioner for Legal, Licensing and Compliance, Dafe Akpeneye.
The commission said the suspension order would last between September 28 and October 11 when it shall cease to have effect.
“During the 14 days suspension, all tariffs for end-use customers and market obligations of the DISCOs shall be computed on the basis of rates applicable as at 31 August, 2020.” NERC stated.
NERC on the 1st of September, pursuant to Sections 32 and 76 of the Electric Power Sector Reform Act, had approved the Multi-Year Tariff Order 2020 for the 11 successor electricity distribution companies.
The commission stated that the primary objectives of the MYTO 2020 order was to ensure that rates charged by the DISCOs were not only fair to customers, but also sufficient for the DISCOs to operate efficiently to recover the full cost of their activities, including a reasonable return on the capital invested in the business.
The affected DISCOs are the Abuja Electricity Distribution Company Plc, Benin Electricity Distribution Company Plc, Enugu Electricity Distribution Company Plc, Ibadan Electricity Distribution Company Plc, Jos Electricity Distribution Company Plc, Kaduna Electricity Distribution Company Plc, Kano Electricity Distribution Company Plc, Eko Electricity Distribution Company Plc, Ikeja Electric Plc, Port Harcourt Electricity Distribution Company Plc and Yola Electricity Distribution Company Plc.
Following the approval of the new tariffs by NERC, the 11 DISCOs immediately hiked their electricity rates, which has now been in operation for about four weeks, and have been met by criticisms across a broad spectrum of Nigerians.
NERC had said the hike would not affect consumers who do not get daily supply of electricity cumulatively for 12 hours a day for a month.
Applicable tariffs for customers in service band D and E (that is customers with a service commitment of less than an average of 12 hours supply per day over a period of one month) would be deferred for the period between September 1 and January 1, 2021.