The Nigerian Electricity Regulatory Commission, NERC, Monday, denied hiking electricity tariffs, stating that the review of the Multi-Year Tariff Order, MYTO, does not mean an immediate increase in tariff for electricity consumers.<\/p>\n
However, electricity distribution companies, under the aegis of Association of Nigerian Electricity Distributors, ANED, declared that they would begin implementation of the increase in tariff from April 1, 2020.<\/p>\n
Addressing newsmen in Abuja, Chairman\/Chief Executive Officer of NERC, Professor James Momoh, also disclosed that from next month, the commission would begin the regulation of estimated billing by electricity distribution companies, DISCOs who fail to provide meters for their customers.<\/p>\n
Momoh stated that the review of the MYTO was the main mandate that NERC statutorily carries out every six months, adding that the latest review would only become effective after consultation with the public.<\/p>\n
He added that in the next three months the commission would engage the public on a consultation on the planned review in electricity tariff.<\/p>\n
He said, \u201cThe proposed tariff review is what we are mandated to do as a regulator. We did the first one around June. January is here, we have done it. We have no option than to do our jobs. We have done the review and it is subject to public consultation.<\/p>\n
\u201cIn the next three months, we will engage you for consultations. We have given the report card of what we saw based on all indices for doing the review. We did not say it is binding tomorrow morning. We said we are going to the second thing: consultation.<\/p>\n
\u201cThe order is simply a communication of what we have done as a regulator looking at what it takes to increase or decrease tariff. If at the end of our meeting, back and front, we say increase, there is increase; if we say no increase, no increase.<\/p>\n
\u201cIt is going to be based on our engagement at the public forum. No increase to tariff . We are not leaving any stone unturned. We do not want any increase without negotiations with the customers. I am a customer too. As customers, we will pay our bills. But if you suddenly change it, I need to know why. It must be for the good of everybody. Don\u2019t forget, service must improve.\u201d<\/p>\n
To regulate estimate billing<\/p>\n
Speaking on the regulation of estimated billing, Momoh stated that henceforth, with the introduction of the law, any DISCO that failed to provide meters to customers would be compelled to charge customers a regulated fee for electricity supplied, noting that the charges would be unfavourable to the DISCOs in the long run.<\/p>\n
He noted that the decision of the NERC to regulate estimate billing would help promote the drive towards ensuring the metering of customers across the country.<\/p>\n
He said, \u201cWe would do everything within our powers to ask and ensure that electricity distribution companies, DISCOs, provide meters through the Meter Asset Providers, MAP, to its customers.<\/p>\n
\u201cFailure to do so, we have a back up plan , which is one of our regulations that would be out in about a month\u2019s time, on capping, which we would put a maximum amount the DISCOs can charge a customer that it had not been able to provide meter. In fact, it would be to their advantage to provide meters.<\/p>\n
\u201cThe capping issue is win-win situation for customers to want our meters and for DISCOs to want to provide meters. The minimum we are going to allow them to charge will not be to the advantage of DISCOs in the long run.\u201d<\/p>\n
DISCOs to go ahead with tariff increase<\/p>\n
Meanwhile, in a statement in Abuja, ANED stated that for now, the tariffs would remain the same as they presently are, which is at the 2015 levels, until April 1, 2020.<\/p>\n
According to ANED, from April 2020, there would be a slight increment to cater for tariff shortfalls which shall be gradually passed on to the consumer until this is fully completed by the end of 2021.<\/p>\n
It said, \u201cNERC has just reviewed the MYTO 2015 and has published an Order on Tariffs and Minimum Remittance for Jan to June, 2020. The tariffs anticipate changes in the currency exchange rates between the United States and Nigeria, changes in the rate of inflation and gas prices.<\/p>\n
\u201cIn view of the foregoing, we state emphatically that there shall be no change or increase in the existing electricity tariff until April 01, 2020 when the new adjusted tariffs shall begin to gradually reflect the dynamism of our macro-economy.<\/p>\n
\u201cWe sincerely hope that this statement substantially clarifies the accurate position and allays any fears and concerns, our esteemed customers may have.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
The Nigerian Electricity Regulatory Commission, NERC, Monday, denied hiking electricity tariffs, stating that the review of the Multi-Year Tariff Order, MYTO, does not mean an immediate increase in tariff for electricity consumers. However, electricity distribution companies, under the aegis of Association of Nigerian Electricity Distributors, ANED, declared that they would begin implementation of the increase […]<\/p>\n","protected":false},"author":62,"featured_media":11892,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24,15],"tags":[1290,1289],"class_list":["post-19805","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","tag-aned","tag-nerc"],"yoast_head":"\n