Scheduled Electricity Hike Postponed by NERC

NERC new regulation

What was supposed to be another increase in the economic obligations of Nigerian’s was yesterday reverted and postponed to a later date.

The  Nigerian Electricity Regulatory Commission (NERC) had earlier scheduled April 1st 2020 as the date that its new electricity tariff which will see an increase in price by the Electricity Distribution Companies (DisCos) will take off.

Fortunately, that has been postponed till June 30th 2020. This was contained in a tariff order dated March 31st and published on the website of the commission.

According to NERC it postponed the order for a couple of reasons. Firstly, it claims that 60% of electricity customers are unmetered nationwide and is a “major impediment to both an immediate tariff review and revenue protection of DisCos.”

The COVID-19 is also a reason why the postponement was inevitable.

The order cited that the COVID-19 pandemic has significantly impacted the ability of DisCos to be meter customers through the meter asset provider scheme which it calls MAP.

The DisCos complained that due to the COVID-19 restrictions internationally, they have been unable to import critical components that are needed to assemble the meters.

The order reads: The electricity regulatory body had previously earmarked April 1st for an increase in electricity tariffs across the country in line with its extraordinary tariff review program.  However, it has now mandated that there will be no increase in electricity tariff until a minor review is order is issued June 30th, 2020.

As it stands now, all DisCos have been mandated by NERC to continue with the current billing tarrif pending when the reviw is completed in June.

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