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NERC approved July 1 tariff increase, DisCos insist

By Obas Esiedesa

The Electricity Distribution Companies (DisCos) on Sunday insisted that the plan to increase electricity tariff on July 1, 2020 had the approval of the both the Nigerian Electricity Regulatory Commission (NERC) and the Federal Government.

The DisCos in a statement through their umbrella body, the Association of Nigerian Electricity Distributors (ANED), expressed concern that NERC was trying to distance itself from the new service-based electricity tariff regime.

The utilities had last week announced to their customers of the commencement date for the tariff regime, after about four months delay.

ANED in the statement signed its Executive Director of Research and Advocacy, Barr. Sunday Oduntan, disclosed that NERC had written to the DisCos requesting them not to mention the Federal Government on planned regime.

Oduntan explained: “We are in a regulated sector. We cannot take a decision about a very critical aspect of the sector like tariff without a nod from the regulator (NERC). However, what has happened in recent days is that our regulator is warning us not to mention their name or the Federal Government in any of our communication about the tariff increase with our customers. This is certainly very unfair.

“Many stakeholders have expressed their concern at the unusual silence of our regulator, NERC on the upcoming increase and it looks like a unilateral decision by the DisCos.

“We’ll like to inform Nigerians that tariff review (upward or downwards) is the primary responsibility of NERC as our regulator. We are required to submit our proposals and they have the final say”.

He continued: “Hence we were surprised to receive a letter from NERC to all the DisCos warning them not to mention their name or that of the Federal Government in any public communications on tariffs.

“While it is our obligation to communicate the increase, it is also important for customers to know that it is following standard processes of tariff adjustments in the sector with approvals from NERC and the Federal Government.

“As DisCos, we believe in the rule of law. We will only carry out lawful approval and instructions by our regulator.”

Oduntan explained further that “the proposed increase and the timing of the increase in tariffs was done by NERC. It is their statutory responsibility. DisCos alone cannot fix and approve electricity tariffs.

“We are very sensitive to the feelings and yearnings of our customers during this period of Covid-19.

“To demonstrate our sensitivity, Nigerians will recall that the DisCos, in conjunction with the National Assembly came out to suggest a two-month free electricity supply for our residential customers but the proposal was not approved by the Federal Government due to paucity of funds occasioned by the reduction of national incomes from sales of crude oil.

“The fact that the action is deliberately made to look unilateral is capable of creating public resistance, effectively setting DisCos up to fail”.

He added that “the truth is that we are the public facing arm of the sector, but what we collect is shared by everybody, including NERC.

“Our interest is in the nurturing of a commercially viable power sector. Political considerations and bickering will certainly not take us there”.

Written by ExpressDay

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