The Nigerian Electricity Regulatory Commission is going ahead with plans to review power tariffs in July this year despite widespread resentments by the organised labour, consumer groups and other individuals.
NERC had announced on April 26, 2021 that another tariff review for Nigeria’s 11 power distribution companies would hold in July, explaining that inflation, gas price, among others, had changed.
It disclosed this in its notice of Minor and Extraordinary Review of Tariffs for Electricity Transmission and Distribution Companies, a development that might lead to a rise in the tariffs payable by electricity users.
But on April 30, the Minister of Power, Sale Mamman, dismissed concerns of a major hike in electricity tariffs, as he clarified that there was no plan to significantly raise tariffs.
Mamman said instead of a significant hike in electricity tariffs, Nigerians should expect increased efficiency in the sector to reduce tariffs, while managing headwinds from foreign exchange and inflation.
However, after the tariff hike dismissal statement of the minister, the NERC on Sunday granted approval for the Extraordinary Tariff Review applications, Performance Improvement Plan and Capital Expenditure for electricity distribution companies.
It was gathered that the Discos had applied for cost reflective tariffs, which would warrant a hike in the rates payable for electricity if implemented.