We Didn’t Approve 50% Electricity Tariff Increase – NERC

The Nigerian Electricity Regulatory Commission (NERC) has debunked reports that it approved a 50% increase in electricity tariffs.

ALEDEH News had reported that the commission approved another increase in tariffs.I

In a directive issued on December 31, 2020, and signed by NERC chairman, Sanusi Garba, the commission said the new tariff would take effect from January 1, 2021.

NERC said some of the indices considered for the upward review include Nigeria’s inflation rate, exchange rate, US rate of inflation, available generation capacity, gas price, MDA losses and capex adjustment.

Some reports (Not ALEDEH News) subsequently suggested that the new tariff was a 50% increase from the previous one.

However, in a statement Tuesday afternoon, NERC said the reports were misinforming electricity consumers.

It clarified that the tariff for customers on service bands D & E (customers being served less than an average of 12hrs of supply per day over a period of one month) remains frozen and subsidised.

The commission noted that the hike affected the rates for service bands A, B, C, D and E. It said the rates were adjusted by N2.00 to N4.00 per kWhr to reflect the partial impact of inflation and movement in foreign exchange.

NERC further said that the move was in compliance with the provisions of the EPSR Act and the nation’s tariff methodology for biannual minor review.

“The attention of the Commission has been drawn to publications in the print and electronic media misinforming electricity consumers that the Commission has approved a 50% increase in electricity tariffs,” the statement read.

“The Commission hereby state unequivocally that NO approval has been granted for a 50% tariff increase in the Tariff Order for electricity distribution companies which took effect on January 1, 2021.

“On the contrary, the tariff for customers on service bands D & E (customers being served less than an average of 12hrs of supply per day over a period of one month) remains frozen and subsidised in line with the policy direction of the FG.

“In compliance with the provisions of the EPSR Act and the nation’s tariff methodology for biannual minor review, the rates for service bands A, B, C, D and E have been adjusted by NGN2.00 to NGN4.00 per kWhr to reflect the partial impact of inflation & movement in forex.”

The commission, therefore, asked the media to “retract their earlier publications misinforming electricity consumers nationwide about a purported 50% increase in electricity tariffs.”

“The Commission remains committed to protecting electricity consumers from failure to deliver on committed service levels under the service-based tariff regime.

“Any customer that has been impacted by any rate increases beyond the above provision of the tariff Order should report to the Commission at customer.complaints@nerc.gov.ng,” it added.