DisCos Hold Off on Tariff Hike, Pending NERC Approval 

Recall that DisCos around the nation made statements notifying consumers of an estimated 40% rate increase that was slated to take effect on July 1, 2023.

By Omotayo Olutekunbi

The major electrical governing body, the Nigerian Electrical Regulatory Commission (NERC), has yet to approve the rate increase, according to the DisCos.

Before implementing a tariff increase, NERC said that several indicators must be evaluated, such as gas price, currency rate, US inflation rate, and available generating capacity.

Recall that DisCos around the nation made statements notifying consumers of an estimated 40% rate increase that was slated to take effect on July 1, 2023. The Abuja Electricity Distribution Company, AEDC, was one of the DisCos prominently included in the increase announcement.

In a widely circulated memo sent to its customers, AEDC said “Effective July 1, 2023, please be informed that there will be an upward review to the electricity tariff influenced by the fluctuating exchange rate.

“Under the MYTO (Multi Year Tariff Order) 2022 guidelines, the previously set exchange rate of N441/$1 may now be revised to approximately N750/$1 which will have an impact on the tariffs associated with your electricity consumption”.

However, in a recent communication, DisCo asked its customers to ignore the notification since the previous rate will still be applied in future invoicing. AEDC also informed consumers that the planned increase was still subject to regulatory approval.

“Please disregard the circulating communication, regarding the review of electricity tariffs. Be informed that no approval for such increments has been received. We regret any inconvenience,” the AEDC stated in the recent announcement.

A source from NERC told The Punch that there was no standing instruction to DisCos to achieve any rate increase. Olabode Fadipe, a stakeholder in the electrical industry and former AEDC spokesman, verified NERC’s stance on the subject.

He said, “NERC never publishes any position or makes any official statement. It is the Discos that does that. Once the Discos receive approval from NERC, they effect the adjustment straightaway.”