The proposed increase in electricity tariffs set to commence today, Wednesday, has been suspended by the Nigerian Electricity Regulatory Commission (NERC).
NERC had on January 4, in its December 2019 Minor Review of Multi Year Tariff Order 2015 and Minimum Remittance Order for the Year 2020 for the 11 Discos, said that consumers would start to pay more for electricity from April 1.
The review was necessary because of the wide metering gap in the Nigerian electricity supply industry, currently at about 60 per cent, which they said “is a major impediment to both an immediate tariff review and revenue protection for Discos.”
“There shall be no increase in tariffs of end-use customers on April 1, 2020,” the commission said in a new order.
It said the December 2019 Minor Review of Multi-Year Tariff Order 2015 and Minimum Remittance Order for the Year 2020 would remain in force until June 30, 2020 when a new minor review order would be issued by the commission.
“The Federal Government of Nigeria shall provide tariff support during the transitional period to full revenue recovery ending on June 30, 2021 based on the under-recovery of the revenue requirement determined by the commission,” NERC said.
“All future tariff reviews shall be on the basis of consultations between the Discos and customer clusters with firm commitments on rates and quality of service.”
He said, “the NLC completely condemns and totally rejects any plan to inflict further pain on Nigerians at this very trying period of the novel coronavirus pandemic through increase in electricity tariff.”
“We wish to state that any increase in electricity tariff would only convey a deafening expression of insensitivity to the plight of the Nigerian people who are currently dealing with the social scare, income haemorrhage, economic squeeze and mortal dread of COVID-19,” he added.