The Federal Government has announced that the 11 power distribution companies (Discos) in Nigeria have submitted applications for the review of their electricity tariffs. This move is aimed at incorporating changes in the country’s macroeconomic parameters and addressing factors that affect the quality of service and sustainability of the companies.
The Nigeria Electricity Regulatory Commission (NERC) published a notice stating that the application for rate review by the Discos is in accordance with the Electricity Act 2023. Earlier in June, some power distribution companies had announced a planned tariff hike, but later retracted the decision after public backlash and the lack of approval from the NERC.
The NERC’s announcement confirms that the power distribution companies have officially applied for a review of their tariffs. However, it is important to note that this is an application and not an immediate tariff hike. The NERC will assess the applications based on relevant regulations and considerations before making a decision.
Opinion: The application for tariff review by the power distribution companies highlights the ongoing challenges in the Nigerian electricity sector. It is crucial for the NERC to carefully evaluate these applications, taking into account the impact on consumers and the need for a balance between fair pricing and ensuring the financial viability of the Discos. Transparency and effective communication with the public are key to building trust and maintaining stability in the sector.