NERC may suspend planned electricity tariff hike

There are indications that the planned increment in electricity tariff by the Nigeria Electricity Regulatory Commission (NERC) due to take off on February 3, 2016 may be shelved as stakeholders particularly the Nigeria Electricity Consumers Advocacy Network (NECAN) yesterday kicked against it.

This development was the outcome of a meeting convened by the ad hoc committee on Electricity Tariff and Billings of the House of Representatives with the Association Electricity Distribution Companies, Discos, Nigeria Electricity Regulatory Commission (NERC) and NECAN.

In a short statement issued by the ad hoc committee chairman, Hon. Babajimi Benson, each group expressed their respective positions on issues of billings and infrastructure.

According to the statement, NERC as the regulator made a case for tariff increase, Discos made a case for a cost reflective to sustain and enable them expand and improve on service delivery.

But the consumer group NECAN, made a case against tariff hike on the premise that such increase will further reduce the purchasing power of individual consumers and affect profitability of businesses.

On the part of the ad hoc committee, as stated in the statement, “we are reviewing all the relevant documents provided alongside our engaged consultants at the same time analysing the proposed tariff review in consultation with NERC, TCN and Bulk Traders to ascertain the basis of MYT0 2015 tariff model”.

“We assure that a fact based outcome of our investigation will a fair balance to all stakeholders and we shall submit our report within 14 days”.

Further findings revealed that the proposed increase is about 17percent for Residential Consumers (RC 2) which consists of 86percent of the entire residents in the Federal Capital Territory, FCT

Heavy consumers of electricity such as manufacturing companies are expected to pay almost 50percent of what they presently pay and the percentage of those in this category is 0 .6percent in the FCT.

It will be recalled that the ad hoc committee had warned NERC three weeks ago not to increase tariff until it concludes all investigative hearings on the issue.

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