Nigerian Electricity Regulatory Commission has distanced itself from the proposed electricity tariff hike from July 1, 2023 by Power Distribution Companies of Nigeria, claiming such idea lack its’ approval.
Preceding information making the rounds has the Discos sent public notices maintaining that the electricity tariff would be raised by about 30 to 40 per cent for selected categories of consumers on July 1, 2023.
In a public service announcement from the Abuja Electricity Distribution Company, for instance, the Disco had 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”
But in an appeal by the same AEDC, issued on Monday, the firm asked its customers to disregard the planned tariff increase as approval for such an increment had not been received.
A senior official in NERC confirmed that the regulator had not given the Discos approval to announce the hike in tariffs.
“The commission did not give them such approval,” the official, who pleaded not to be named due to lack of approval, stated.
Reacting to the development, a former spokesperson of the AEDC and seasoned expert in the sector, Olabode Fadipe, 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.
“Discos perhaps got approval for 1st July and chose to put their customers on notice only to be told that their action was hasty. That end users have been told to ignore the message does not mean that the increase won’t be effected.”
A report by Punch holds that the spokesperson for Ikeja Electric, Ayeni Akinola, described the initial trending circular as “fake”. Mr. Ayeni thrashed the circular advising customers with prepaid meters to purchase energy units in bulk before the price increment takes effect from July 1.
“For those on post-paid (estimated), billing, a significant increment is imminent in your monthly billing, starting from August,” it stated.
In another effort, comments were credited to the Assistant Communications Manager, Nigerian Electricity Regulatory Commission, Mary Anavhe, who dismissed an imminent increase in tariffs.
Eko Disco and Ibadan Electric spokespersons in Babatunde Lasaki and Busolami Tunwase, respectively, including the Executive Secretary for the Association of Nigerian Electricity Distributors, Sunday Oduntan were also reached according to Punch, and it was maintained that; Lasaki and Oduntan declined to pick up calls nor responded to inquiries on the development, while Tunwase make reference to NERC for an official response.
“We are not responsible for tariff increase or decrease, NERC is. We only carry out such directives from NERC,” she said in a response note.
However, a minor electricity tariff hike is schedule to hold every six months. The last review was carried out in December 2022, and June 2023 should be the next. We keep you posted as event unfolds on subject matter.
