NERC suspends proposed tariff increase

The Nigerian Electricity Regulatory Commission (NERC) has directed electricity distribution companies (DisCos) in the country to suspend the proposed tariff increase.

In January, the regulator had announced that there would be an upward review of electricity tariff across the country from April 1.

But in a memo on Tuesday, the commission said the adverse effects of the coronavirus has affected global economy and Nigerians are also bearing the brunt.

“The Orders of the Commission (Order No NERC/GL/184/2019 TO NERC/GL/184/2019) titled ”THE DECEMBER 2019 MINOR REVIEW OF MULTI YEAR TARIFF ORDER (MYTO) 2015 AND MINIMUM REMITTANCE ORDER FOR THE YEAR 2020? shall remain in force until 30 June 2020 when a new minor review Order shall be issued by the Commission,” the memo read.

“There shall be no increase in tariffs of end-use customers on 1 April 2020.

“The current global COVID-19 pandemic has significantly impacted on the availability of imported components for local assembly of meters for supply to end-use customers under the Meter Asset Provider (”MAP”) regulations and the roll out plan for the existing stock.

“The Commission acknowledges the adverse effects of the COVID-19 pandemic on global economy and the consequential impact on the average Nigerian.

“All future tariff reviews shall be on the basis of consultations between the DisCo and customer clusters with firm commitments on rates and quality of service. The service level compact shall include a compensation mechanism for end-use customers to address the DisCo’s failure events to deliver on performance targets.”