The Nigerian Electricity Regulatory Commission (NERC) has requested stakeholders in the electricity sector to participate in a public response regarding the proposed request for electricity distribution companies (DisCos) to raise electricity tariffs in the country. This call for engagement comes after the DisCos advised Nigerians to purchase bulk tariffs in anticipation of an imminent tariff increase, citing operational losses as a driving factor.
Initially scheduled to take effect on July 1st, the proposed tariff increase was subsequently suspended following public outcry and the lack of approval from NERC prior to the advisory being issued. In accordance with the 2023 Electricity Act and existing regulations, the 11 DisCos have filed an application for a rate review with NERC. The request is based on the need to incorporate changes in macroeconomic parameters and other factors that affect the quality of service, operations, and sustainability of the distribution companies.
In a statement, NERC announced that it is inviting the general public to provide comments on the rate review applications submitted by the distribution licensees. This inclusive approach seeks to ensure transparency and gather diverse perspectives on the proposed tariff increase. Stakeholders, including consumers, consumer advocacy groups, civil society organizations, and industry experts, are encouraged to participate actively by sharing their opinions, suggestions, and concerns.
NERC’s aim is to gather valuable feedback and insights from stakeholders before making a final decision on the rate review applications. The commission recognizes the importance of considering various viewpoints and ensuring that the interests of all parties involved are taken into account.
The issue of electricity tariffs in Nigeria has sparked debates surrounding affordability and the need for reliable power supply. The rate review process aims to strike a balance between the financial viability of the DisCos and the affordability of electricity for consumers, while also promoting sustainable operations and improved service quality.
In light of these ongoing discussions, NERC has called for a stakeholders meeting to facilitate comprehensive dialogue and further review of the proposed electricity tariff increase. The meeting will provide an opportunity for stakeholders to express their concerns, present alternative solutions, and contribute to shaping the future of electricity tariffs in Nigeria.
As Nigeria continues its efforts to develop a robust and sustainable electricity sector, engaging stakeholders and considering public input remain crucial for ensuring an equitable and reliable power supply for all.
