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NERC orders DisCos to suspend new tariff for two weeks

NERC orders DisCos to suspend new tariff for two weeks
September 30
09:31 2020

The Nigerian Electricity Regulatory Commission (NERC) has ordered electricity distribution companies (DisCos) to suspend the implementation of the new tariff till October 11.

The DisCos began implementation of a new service-based reflective tariff (SRT) structure nationwide on September 1 after receiving approval from President Muhammadu Buhari.

However, the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) protested the new tariff and called for a nationwide strike.

After a meeting with the federal government a few hours to the protest on Monday, the NLC and TUC suspended the proposed strike after brokering an agreement to halt the electricity tariff increase.

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The suspension is to last for two weeks while a technical committee set up by the federal government examines the justification for a new cost-reflective tariff.

According to the order signed by James Momoh (pictured), NERC chairman, and Dafe Akpeneye, NERC commissioner for legal, licensing and compliance, all tariffs for end-use customers will revert to the old pricing as of August 31 during the 14-day suspension.

“This order shall take effect from September 28, 2020, and shall cease to have effect on October 11, 2020,” the NERC said on Tuesday.

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“Following a joint communique issued by the Federal Government of Nigeria (“FGN”) and the labour unions, the FGN agreed that the recent review in electricity tariffs would be suspended by the commission for a period of 14 days to further consultations and finalisation of negotiations between the parties.

“All tariffs for end-use customers and market obligations of the DisCos during the 14-day suspension shall be computed on the basis of rates applicable as at August 31, 2020.”

A top official of the Association of Nigerian Electricity Distributors (ANED), the umbrella body of the DisCos, who spoke to TheCable on Tuesday had said DisCos had not received notice of the suspension.

While applying for a loan from the International Monetary Fund, the federal government promised to get rid of electricity and petrol subsidy.

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