Again, DISCO seeks tariffs review from Nigerian Electricity Regulatory Commission

Power distribution companies and the Transmission Company of Nigeria Plc have requested for a review of their tariffs from Nigerian Electricity Regulatory Commission.

NERC, in a document, said the request for rate review was surrounded to incorporate changes in macroeconomic parameters and other factors affecting the operational efficiency of Discos and TCN.

The commission, in its December 2019 Minor Review of Multi Year Tariff Order 2015 and Minimum Remittance Order for the Year 2020 for the 11 Discos, had said on January 4 that consumers would start to pay more for electricity from April 1, 2020.

Following the public reactions about the hike of electricity tariffs, the House of Representatives asked the Federal Government to suspend the planned increase review of the tariff.

NERC said in the document that the extraordinary tariff review filed by the 11 successor electricity distribution licensees and the TCN “seeks to ensure that the utilities recover their full efficient costs with reasonable return on the assets invested in the business.”

It said the review was also for reasons at ensuring the recovery of the Discos’ revenue needed through fair rates.