NERC Issues 86% Collection Orders To Discos

The Nigerian Electricity Regulatory Commission (NERC) has issued a directive that power distribution companies (DisCos) can collect about 85.84% of the newly increased electricity tariffs from affected customers between September and December 2020.

In its latest orders in the matter of the Extraordinary Review of Multi Year Tariff Order 2015, which were recently issued to the 11 DisCos operating across the country, NERC granted approval to DisCos to collect as high as over 80 per cent of the newly increased tariff from customers.

Expectedly, power consumers have kicked against the tariff hike and the decision by NERC to issue such orders.

Notwithstanding, in the orders to Discos, which were jointly signed by NERC chairman, James Momoh, and a commissioner, Dafe Akpeneye, the commission said that the new tariffs took effect from September 1.ALSO READ

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Investigations reveal that after NERC considered the key indices used in evaluating the tariff increase applications of the power firms, it approved an average of about 85.84% as what the DisCos should collect from customers affected by the hike in tariffs.

For instance, the Abuja Electricity Distribution Company (AEDC), the NERC said its end-use cost-reflective tariff from September to December was N57.01 per kilowatt-hour and put the AEDC end-use allowed tariff during this period at N50.05/kWh.

Based on this order, AEDC would collect 87.79% as end-use allowed tariff from customers affected by the September 1 electricity tariff hike.

The power firm’s tariff shortfall during the period is 12.21%. Cost-reflective tariff is the tariff that will enable the Discos to recover their costs while the allowed tariff is what they are allowed to recover from their customers by the regulator.

SOURCE: orientenergyreview.com