General

NERC confirms electricity tariff hike across 10 DisCos

NERC confirms electricity tariff hike across 10 DisCos

Electricity

Sets 100% minimum remittance

By Obas Esiedesa

D Nigerian Regulatory Commission (NERC) yesterday adjustments to electricity tariff regime across ten electricity distribution companies with increases ranging from 5-12 percent.

D adjustment to the Multi-Year Tariff Order (MYTO) took effect from February 1, 2022, according the issued by the Commission and posted on its official on night.

Justifying the rise in tariff, NERC stated that it was to “ that payable by consumers are commensurate with and aligned with the quality and availability of supply to customer clusters” by the DisCos.

  • And: Electricity: DisCos receive 3,237MW as blackout persists

It also added that the adjustment would ensure that prices charged by the DisCos “are fair to customers” and are sufficient to allow the DisCos “to follow recover the efficient cost of operation including a reasonable return on the invested in the business”.

NERC also stated that the adjustment would also “ensure sustained improvement in reliability of supply in line with the DisCos capital expenditure (CAPEX) and performance in improvement plan”.

Checks by Vanguard on the Order for individual DisCos showed that for Abuja DisCo, non-maximum (Non-MD) customers in Band A (minimum of 20 hours supply per day) would be billed 8 percent higher while maximum demand (MD) customers in the same band would be charged 1.04 percent lower.

For Non-MD in Band B (minimum of 16hrs per day), tariff rose by 8.8 percent while it remained the same for MD customers in Band B. For Non-MD customers in Band C (minimum of 12hrs per day), tariff rose by 11 percent while MD customers would 7 percent more.

Also, for Non-MD customers in Band D (minimum of 8hrs per day), tariff rose by 11.7 percent while those on MD would pay 6.8 percent more. For Non-MD customers in Band E (minimum of 4hrs per day), tariff rose by 12 percent while MD customers in the band would have a tariff of 5.3 percent.

For the poorest consumers (Lifeline: R1) with consumption of not more than 50kWh per month, tariff remained frozen in N4.

With the adjustment, NERC has ordered the DisCos to pay 100 percent of invoices issued to them by the Nigerian Bulk Electricity Trading Plc (NBET) and the Market Operator (MO).

D Commission warned that DisCos shall “be liable to relevant / for failure to meet the minimum remittance requirement in any payment circle under the terms of respective contracts with NBET, MO and the provisions of the Market Rules and Supplementary TEM (Transition Electricity Market) Order”.

D Yola Electricity Distribution Company which was recently sold to a new was not captured in the adjustment.

D post NERC electricity tariff across 10 DisCos appeared first on Vanguard News.

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