Eleven Electricity distribution companies (DisCos) in Nigeria have called for review of electricity tariff rate to reflect changes in macro-economic parameters.
This is coming shortly after the DisCos turned back on reports of possible tariff increase.
The Nigerian Electricity Regulatory Commission, NERC however, in it’s recent report stated that the 11 successor electricity distribution companies have filed an application for rate review with the Commission.
The document also reads: “Pursuant to Section 116 (1) and 2(a&b) of the Electricity Act 2023 and other extant rules, the 11 successor electricity distribution companies (“DisCos”) have filed an application for rate review with the Nigerian Electricity Regulatory Commission.
“For the DisCos, factors including the increase in exchange rate, which is about N785/$1, inflation rate at 22.41 per cent in May 2023, among others, should be reflected in the tariff as the last tariff increase was benchmarked on N400/$1 being the official exchange.
“The request for rate review is premised on the need to incorporate changes in macroeconomic parameters and other factors affecting the quality of service, operations and sustainability of the companies,” it said.
The commission further disclosed that the request for rate review was premised on the need to incorporate changes in macro-economic parameters and other factors affecting the quality of service, operations and sustainability of the companies.
“As part of the rule-making process and in the exercise of the powers conferred by the Electricity Act, the Commission shall conduct a Rate Case Hearing on the applications prior to making a ruling.”
According to the Commission, the request to participate shall include an explanation of the person’s interest in the proceeding and how the party would be affected by the outcome of the Application; and a description of the party’s concerns, observations comments and/or objections to the application.
The Commission hereby invites the general public for comments on the rate review applications by the distribution licensees.
“Any person wishing to participate in the proceedings as an intervenor should forward his/her application to tariff@nerc.gov.ng before close of
business on July 20, 2023.”
According to the Commission, the request to participate shall include an explanation of the person’s interest in the proceeding and how the party would be affected by the outcome of the Application; and a description of the party’s concerns, observations comments and/or objections to the application.
“Any person wishing to participate in the proceedings as an intervenor should forward his/her application to tariff@nerc.gov.ng before close of business on July 20, 2023,” the Commission stated.
(VON)