By Tanko Mohammed
The Nigerian Electricity Regulatory Commission(NERC) has ordered the 11 Electricity Distribution Companies (DISCOs) to suspend the Sept. 1 tariff increase for 14 days in the interest of the public.
The commission’s suspension order of the Multi Year Tariff Order (MYTO) 2020 signed by Prof James Momoh, NERC’s Chairman was released on its web site on Wednesday.
NERC suspension followed a joint communique issued by the Federal Government and the labour unions.
The Federal Government agreed that the recent review in electricity tariffs would be suspended by the commission for a period of 14 days to further consultations and finalisation of negotiations between the parties.
The order by NERC said that from Sept 28 to Oct 11 the DisCos must revert all charges to the tariff existing as of Aug 31.
“This means that for the next two weeks, electricity consumers having power above 12 hours who were affected by the over 100 per cent tariff hike would revert to their old charges.
It said as empowered by Section 33 of the Electric Power Sector Reform Act, EPSRA 2005, the Minister of Power, Sale Mamman can issue such directive to NERC.
Also Mr Dafe Akpeneye, Commissioner, Legal Licensing and Compliance, NERC, said the suspension was in the interest of the public and would be implemented by Discos.
He said on Wednesday at the virtual 2020 Businessday Energy Series – Fuel of the Future (Gas) Summit – with the theme: “Nigeria at 60: Harnessing Nigeria’s Energy Potential for the Future”.
Akpeneye said the suspension would enable further consultations and finalisation of negotiations between the Federal Government and Labour unions who had kicked against the tariff hike.
“The gesture was done in good faith by the government and NERC as a regulator is bound by Section 33 of the Electric Power Sector Reform Act 2005 to comply with general policy directions concerning electricity from the Minister.
” It says the commission shall take into consideration in discharging its functions under section 32(2), provided that such directions are not on conflict with this Act or the Constitution of the Federal Republic of Nigeria.
“Looking at the overriding public interest on this issue, we saw that this a valid policy directive and we issued the order to suspend the tariffs review from Sept. 28 to Oct. 11 to enable parties continue with their negotiations.”
Akpeneye said the DisCos would comply with the new order because the government had always cover for the short fall caused by the absence of a cost reflective tariff in the past five years.
According to him, the Multi Year Tariff Order (MYTO) 2020 was approved by NERC for the DisCos with effect from Sept. 1 after series of dialogue with all stakeholders in the industry.
He noted that the last MYTO was done in 2015 but became effective in 2016, adding that the new review was done to ensure that rates charged by DisCos were fair to customers.
Akpeneye said it was also to ensure that DisCos operate efficiently to recover
the full cost of their activities, including a reasonable return on the capital invested in the business.
