NERC Plans Another Electricity Tariffs Review

Nigerians may experience another electricity tariffs increase by next month if the plan by the Nigerian Electricity Regulatory Commission (NERC) to carry out another review comes to fruition, THISDAY learnt last night.

On September 1, NERC approved the take-off of the Service-Reflective tariff regime which saw some Nigerians pay as much as an additional 50 per cent price for electricity, a move that was opposed by organised labour.

However, a source at the commission, who preferred to remain anonymous, told THISDAY that the review does not necessarily mean a higher payment by consumers.

The source noted that although a review has been scheduled, some other considerations might come into play, including political considerations as to the timing or the changes in the indices may be too minor to constitute any change in tariffs.

He said it may be deferred to the next round of minor review, which is done bi-annually.

“Government may say ‘leave my people alone’ or we will take responsibility for any increase. In another instance, if it’s negligible, NERC can carry it over to the next circle of review. There’s a margin. If it’s not up to that level or margin it can’t be rolled over to the next review,” the source said.

But in the document obtained yesterday titled: “Notice of The Bi-Annual Review of the 2020

Tariff Orders for Determination of Charges and Tariffs for Electricity Generation, Transmission and Distribution,” NERC noted that the review in December will take into consideration inflation rate, dollar exchange rate to naira as well as natural gas price.

Although the document indicated that it was signed by the chairman, it however did not name him apparently because the tenure of Prof. James Momoh expired on 26 November, having clocked the statutory 70 years.