Eleven electricity distribution companies (DisCos) in Nigeria have recently submitted applications for a review of electricity tariffs to the Nigerian Electricity Regulatory Commission (NERC).
The move comes after a proposed 40% increase in electricity tariffs, initially scheduled for implementation on July 1, was put on hold due to pressure from the Nigerian Labour Congress (NLC).
According to a statement released by NERC on Friday, the DisCos’ applications are based on the need to align electricity rates with the current macroeconomic dynamics.
The statement highlighted the specific provisions under Section 116 (1) and 2(a&b) of the Electricity Act 2023 that authorize the DisCos to file for a rate review.
“The request for rate review is premised on the need to incorporate changes in macroeconomic parameters and other factors affecting the quality of service, operations, and sustainability of the companies,” the statement explained.
In accordance with the rule-making process and the powers vested in the Commission by the Electricity Act, NERC will conduct a Rate Case Hearing to evaluate the applications before making a ruling.
The statement emphasized that interested parties wishing to participate in the proceedings as intervenors must submit their applications to tariff@nerc.gov.ng by the close of business on July 20, 2023.
In a call for transparency and public input, NERC invited members of the public and stakeholders to provide their comments on the rate review applications submitted by the DisCos.
The statement encouraged interested individuals to review the excerpts of the Rate Review Applications, which are accessible on the Commission’s website at www.nerc.gov.ng.
To facilitate public engagement, the Nigeria Electricity Regulatory Commission will conduct a rate case hearing and extend participation to interested members of the public.
This presents an opportunity for stakeholders to contribute their perspectives on the proposed electricity tariff review.
As the review process commences, the outcome will significantly impact electricity consumers across the country.
Stakeholders, both in the public and private sectors, are encouraged to stay informed about the proceedings and provide their valuable input to ensure a fair and balanced decision-making process regarding electricity tariffs.
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