Power distribution companies (Discos) in Nigeria have retracted their earlier announcement of a tariff hike scheduled for July 1, 2023, stating that the Nigerian Electricity Regulatory Commission (NERC) has not approved the increase. The Discos had initially issued public notices indicating a potential 30 to 40 percent tariff increase for certain categories of consumers, citing the fluctuating exchange rate as the reason. However, the AEDC, one of the Discos, later urged customers to disregard the announcement as approval for the tariff hike had not been received.
An unnamed senior official from NERC confirmed that the regulator had not given approval to the Discos to announce the tariff hike. Olabode Fadipe, a former spokesperson for AEDC and an expert in the sector, explained that NERC typically approves tariff adjustments, and once approval is received, the Discos implement the changes. Fadipe suggested that the Discos may have received approval for the July 1 increase but were later informed that their action was premature. He also stated that the fact that end-users were instructed to ignore the announcement does not necessarily mean that the increase won’t be implemented.
The PUNCH reached out to various stakeholders for clarification. A spokesperson for Ikeja Electric described the initial circular as “fake,” while the Assistant Manager Communications at NERC dismissed the possibility of an imminent tariff increase. The spokespersons for Eko Disco and Ibadan Electric declined to respond, and the Executive Secretary for the Association of Nigerian Electricity Distributors referred the matter to NERC for an official response.
In conclusion, the Discos in Nigeria have backtracked on their announcement of a tariff hike, as NERC has not approved the increase. The situation has caused confusion among customers, with conflicting statements from different stakeholders. The uncertainty surrounding the tariff hike reflects the challenges and complexities within the Nigerian electricity sector.
Marketnews Thoughts: The lack of clarity and coordination in the communication regarding the tariff hike raises concerns about the transparency and efficiency of the regulatory process. It is essential for regulatory bodies like NERC to provide timely and accurate information to avoid confusion and uncertainty among consumers. Clear communication and effective coordination between stakeholders are crucial for building trust and ensuring the stability of the electricity sector.