According to the DisCos, the main electricity regulating agency, the Nigerian Electricity Regulatory Commission, (NERC) was yet to issue an approval on the rate increment.
Before a tariff hike is put into effect, NERC said there were some indices to be considered which include gas price, inflation, exchange rate, US inflation rate, and available generation capacity.
Recall there have been some announcements from DisCos across the country informing customers of an expected 40% tariff increment which was set to take effect on July 1, 2023. One of the DisCos that prominently featured in the increment announcement is the Abuja Electricity Distribution Company, AEDC.
In a widely circulated memo sent to its customers, AEDC said “Effective July 1, 2023, please be informed that there will be an upward review to the electricity tariff influenced by the fluctuating exchange rate.
“Under the MYTO (Multi Year Tariff Order) 2022 guidelines, the previously set exchange rate of N441/$1 may now be revised to approximately N750/$1 which will have an impact on the tariffs associated with your electricity consumption”.
The DisCo, however, has urged its customers in a recent memo, to disregard the message as the old rate would still be used in further billing. AEDC also told its customers that the proposed increment was yet to be approved by the regulator.
“Please disregard the circulating communication, regarding the review of electricity tariffs. Be informed that no approval for such increments has been received. We regret any inconvenience,” the AEDC stated in the recent announcement.
According to The Punch, a source from NERC revealed there was no standing order to DisCos to effect any rate increment. A stakeholder in the electricity sector and the former spokesperson of the AEDC Olabode Fadipe also confirmed NERC’s position on the issue.
He said, “NERC never publishes any position or makes any official statement. It is the Discos that does that. Once the Discos receive approval from NERC, they effect the adjustment straightaway.”
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