FG Discloses Power Companies’ Request For Tariff Increase

The Nigerian Federal Government revealed on Thursday that the country’s 11 power distribution companies, known as Discos, have submitted applications for the review of their electricity tariffs.

This update was published in a notice by the Nigeria Electricity Regulatory Commission.

The Discos cited changes in macroeconomic parameters across Nigeria as a basis for their request.

They also highlighted other factors affecting service quality, operations, and company sustainability as reasons for the proposed rate adjustment.

According to the NERC, the application aligns with the rules stipulated in the Electricity Act 2023.

Recall that in June, some Discos had hinted at a possible tariff hike from July 1, 2023, which led to widespread criticism and subsequent withdrawal of the announcement.

This flip-flop triggered a rush among prepaid consumers to purchase more electricity units, anticipating an impending increase in tariffs.

On July 1, 2023, the expected tariff hike did not materialize, suggesting the Discos had not secured approval from the power sector regulator.

However, the NERC announced on Thursday that the power companies had officially applied for a rate review.

In their notice, the regulator confirmed, “Pursuant to Section 116 (1) and 2(a&b) of the Electricity Act 2023 and other extant rules, the 11 successor electricity distribution companies have filed an application for rate review with the Nigerian Electricity Regulatory Commission.”