NERC Permits Discos To Hike Electricity Tariff

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*Asks for metering, consultation

The Nigerian Electricity Regulatory Commission, NERC, on Wednesday night said the power Distribution Companies, DisCos, will only raise tariffs after they consult customers and providers for them.

The Chairman of NERC, Prof. James Momoh in a statement, said the new model is Service Based Tariff.

 “Under these service-based principles DisCos will only be able to review tariff rates for customers when they consult with customers, commit to increasing the number of hours of supply per day and quality of service.”

Although he said no immediate tariff hike, DisCos are free to begin a tariff review process.

Daily Trust learnt that three DisCos have submitted their amended Performance Improvement Plans (PIP) to NERC for approval as basis to raise their rates. A planned hike of about 47 percent average for July 2020 was halted by the National Assembly.

“In all cases poor and vulnerable Nigerians will not experience any increase. In line with these expectations, DISCOs are directed to engage with their customers on a Service Based Tariff structure,” Momoh said in the latest announcement.

The conditions to the DisCos from NERC are that they must consult with their customers and guarantee a level of power supply; schools be metered; no estimated billing above the capping order which means that unmetered customers should not pay above what a metered customer pays.

Customers using 50 kilowatts and below will not see increase in their bills, and customers getting below 12 hours power supply will not have their tariff increased, NERC said.

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