Just In: Discos Reveal Date To Begin Electricity Tariff Increase

Electricity distribution companies of Nigeria on Monday announced that enforcement for the new electricity tariffs will begin on April 1st.

Discos made this known in a tariff review clarification notice through the spokesperson of their umbrella body, Association of Nigerian Electricity Distributors (ANED), Sunday Oduntan.

According to Discos, the new tariffs ordered by the Nigerian Electricity Regulatory Commission (NERC) would cater for revenue shortfalls in the electricity sector.

Oduntan said: “The tariffs shall remain as they had been since 2015 but would change from April 2020.”

ANED said, “The Tariffs shall remain the same as they presently are (i.e. 2015 levels) until April 1, 2020 when there will be a slight increment to cater for tariff shortfalls which shall be gradually passed on to the consumer until this is fully completed by the end of 2021.

“In view of the foregoing, we state emphatically that there shall be no change or increase in the existing electricity tariff until April 1, 2020 when the new adjusted tariffs shall begin to gradually reflect the dynamism of our macro-economy.”

The Discos explained that the NERC was empowered by the Electric Power Sector Reform Act to carry out minor reviews of the Multi-Year Tariff Order 2015 twice a year.

“NERC has just reviewed the MYTO 2015 and has published an order on tariffs and minimum remittance for January to June 2020. The tariffs anticipate changes in the currency exchange rates between the United States and Nigeria, changes in the rate of inflation and gas prices,” ANED stated.