• Friday, June 14, 2024
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BusinessDay

Discos push for electricity tariff review

Kwara hoteliers protest, sues for downward review of electricity tariff

The eleven electricity distribution companies (DisCos) have called for review of electricity tariff rate to reflect changes in macroeconomic parameters.

This is coming shortly after the DisCos turned back on reports of possible tariff increase.

Nigerian Electricity Regulatory Commission (NERC), in a document obtained by Businessday said that the eleven (11) successor electricity distribution companies have filed an application for rate review with the Commission.

It stated that 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.

For the DisCos, factors including the increase in exchange rate, which is about N785/$1, inflation rate at 22.41 percent in May 2023 among others should be reflected in the tariff as the last tariff increase was benchmarked on N400/$1 being the official exchange.

The document read, “Pursuant to Section 116 (1) and 2(a&b) of the Electricity Act 2023 and other extant rules, the eleven (11) successor electricity distribution companies (“DisCos”) have filed
an application for rate review with the Nigerian Electricity Regulatory Commission.

“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 Commission hereby invites the general public for comments on the rate review applications by the distribution licensees.

“Interested stakeholders are advised to
review and take into consideration the excerpts of the Rate Review Applications filed with the Commission by the respective licensees.

“As part of the rule-making process and in the exercise of the powers conferred by the Electricity Act, the Commission shall conduct a Rate Case Hearing on the applications prior to making a ruling.”

According to the Commission, the request to participate shall include an explanation of the person’s interest in the proceeding and how the party would be affected by the outcome of the Application; and a description of the party’s concerns, observations comments and/or objections
to the application.

“Any person wishing to participate in the proceedings as an intervenor should forward his/her application to [email protected] before close of
business on July 20, 2023.”