The Nigeria Electricity Regulatory Commission (NERC) has taken steps to approve an increase in electricity tariff by the Distribution Companies (DISCOs) in Nigeria. In a public notice, NERC has invited the general public to contribute to deliberations on the review application for electricity tariff rates submitted by the distribution licenses. Interested stakeholders are encouraged to review and consider the excerpts of the rate review applications filed with the Commission by the respective licenses.
As part of the rule-making process and in accordance with the powers granted by the Electricity Act, the Commission will conduct a rate case hearing on the applications before making a ruling, as stated in the notice signed by the Chairman/CEO of NERC.
According to NERC, the 11 successor electricity distribution companies (DISCOs) have filed an application for rate review with the Commission, citing the need to incorporate changes in macroeconomic parameters and other factors that impact service quality, operations, and sustainability of the companies. This request for rate review is made under the provisions of Section 116(1) and 2(a&b) of the Electricity Act 2023 and other relevant rules.
The approval of the increase in electricity tariff will have implications for consumers and the overall energy sector in Nigeria, as stakeholders evaluate the proposed changes and provide input during the rate case hearing process.