DisCos Must Obtain Approval Before Electricity Tariff Hike- NERC

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The National Electricity Regulatory Commission (NERC) has emphasized that electricity distribution companies (DisCos) must seek its approval before implementing any tariff increases. Usman Abba Arabi, the spokesperson for NERC, clarified this position in a conversation with The PUNCH correspondent on Tuesday.

Recent media reports suggested that DisCos were planning to raise electricity tariffs in the New Year. In response, Arabi affirmed that the commission has not granted approval for new electricity tariffs for any of the DisCos within the Nigerian electricity supply industry.

He stated, “No new electricity tariff has been approved. Nigerians should ignore any news reports about new electricity tariffs coming up on January 1, 2024.”

Despite NERC’s clarification that there are no plans to increase tariffs, some Nigerians expressed skepticism on social media, indicating concerns that the DisCos might proceed with tariff adjustments without waiting for official NERC approval. Individuals shared instances of perceived increases in electricity charges.

Inusa Mani, a Facebook user from Kaduna, claimed that people purchasing electric units in Kaduna were already paying at new rates. He questioned NERC’s efficacy, suggesting that the regulatory body might not be fully in control or might be paying lip service to Nigerians.

Another resident, Vito Jean, alleged that the Ibadan Electricity Distribution Company had been charging their apartment between N15,000 and N30,000 per month for a house with limited electrical appliances. Meanwhile, Segun Alex raised concerns about the absence of directives from NERC before indiscriminate tariff increases.

Responding to these concerns, Arabi assured the public that DisCos are not permitted to impose any electricity tariff without obtaining approval from NERC. The statement reinforces NERC’s regulatory authority and underscores the necessity for formal approval processes before any adjustments in electricity tariffs are implemented.

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