NERC Issues Circular to Discos to Suspend Electricity Tariff Hike

By Modupe Gbadeyanka

In the wee hours of Monday, Monday, September 28, 2020, the federal government had an agreement with the labour unions to reverse the hike in electricity tariff in the country.

This deal was reached to avert the industrial action and protest earlier fixed for the day.

Though some Nigerians were disappointed with the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) for agreeing to this, a few others said it was the right decision to make especially when the country just returned from a lockdown.

At the beginning of this month, the federal government announced an increment in the price of electricity in the country as well as the price of petrol following the full deregulation of the downstream oil sector. Many Nigerians kicked against this because of the timing.

Last night, the Nigerian Electricity Regulatory Commission (NERC) issued a circular to the 11 electricity distribution companies in the country, directing them to suspend the September 1, 2020, hike in tariffs for 14 days.

According to NERC, which regulates the electricity sector, “This order shall take effect from September 28, 2020, and share cease to have an effect on October 11, 2020.”

“The commission hereby suspends for a period of 14 days, with effect from September 28, 2020, to October 11, 2020, the Multi-Year Tariff Order (MYTO) 2020 that was issued to the following DisCos;

“Abuja Electricity Distribution Company, Benin Electricity Distribution Company, Enugu Electricity Distribution Company, Ibadan Electricity Distribution Company, Jos Electricity Distribution Company, Kaduna Electricity Distribution Company, Kano Electricity Distribution Company, Eko Electricity Distribution Company, Ikeja Electric, Port Harcourt Electricity Distribution Company and Yola Electricity Distribution Company,” the circular signed by Chairman of the agency, Mr James Momoh, and its Commissioner in charge of Legal, Licensing and Compliance, Mr Dafe Akpeneye, stated.

The circular further stressed that, “All tariffs for end-use customers and market obligations of the DisCos during the 14-day suspension shall be computed on the basis of rates applicable as at August 31, 2020.”