By Charles Adingupu
Power distribution firms may have bowed to pressure from different quarters as they announced the immediate withdrawal of an earlier scheduled 40% hike in electricity tariff projected to take effect from July 1, 2023.
They claimed that the reason they have rescinded their decision was to allow the Nigerian Electricity Regulatory Commission, NERC to approve the increase.
Previously, various public notices from the Discos had warned that electricity tariffs would be raised by about 30 to 40 per cent for selected categories of consumers on July 1, 2023.
In a public service announcement from the Abuja Electricity Distribution Company, for instance, the Disco had said, “Effective July 1, 2023, please be informed that there will be an upward review to the electricity tariff influenced by the fluctuating exchange rate.
“Under the MYTO (Multi Year Tariff Order) 2022 guidelines, the previously set exchange rate of N441/$1 may now be revised to approximately N750/$1 which will have an impact on the tariffs associated with your electricity consumption”
However, a recent notice by the same AEDC, asked its customers to disregard the planned tariff increase since no approval for such an increment had been received.
“Please disregard the circulating communication, regarding the review of electricity tariffs. Be informed that no approval for such increments has been received.
We regret any inconvenience,” the AEDC stated in its latest announcement.
A senior official in NERC confirmed that the regulator had not given the Discos approval to announce any hike in tariffs.
“The commission did not give them such approval,” the official, who pleaded anonymity said.
Reacting to the development, a former spokesperson of the AEDC and a sector expert, Olabode Fadipe, said, “NERC never publishes any position or makes any official statement. It is the Discos that does that. Once the Discos receive approval from NERC, they effect the adjustment straightaway.”
