The Nigerian Electricity Regulatory Commission (NERC) has ordered the 11 Distribution Companies (DisCos) to suspend the hiked electricity tariff for two weeks.
NERC had approved the tariff hike for the DisCos from September 1,which 2020. It saw the rates rising by nearly 100 per cent for consumers who get power supply from 12 hours and above daily.
However after the organised labour reached an agreement with the Federal Government on Monday prior to a strike over the hike in electricity tariff and increase in fuel price, NERC issued the order freezing the hike.
The Order on Suspension of the
MULTI YEAR TARIFF ORDER (MYTO) 2020 released on Tuesday was signed by the Chairman, Prof. James Momoh, and the Commissioner, Legal, Licencing and Compliance, Dafe Akpeneye.
It said from October 28, 2020 to October 11, 2020, the DisCos should revert to the rate of August 31, 2020.
Following a joint communique issued by the Federal Government and the labour unions, the Federal Government agreed that the recent review in electricity tariffs would be suspended by the Commission for a period of 14 days to further consultations and finalisation of negotiations between the parties.
The Commission said in line with Section 33 of the Electric Power Sector Reform Act, EPSRA 2005, that empowers the Minister of Power, Engr. Sale Mamman, to issue a policy directive to NERC, it accepts the outcome of the labour, FG communique to suspend the tariff hike for two weeks.
“The Commission hereby suspends for a period of 14-days, with effect from 28
September 2020 to 11 October 2020, the MULTI YEAR TARIFF ORDER 2020
that was issued to the DisCos.
“All tariffs for end-use customers and market obligations of the DisCos during
the 14-day suspension shall be computed on the basis of rates applicable as at August 31, 2020.”