DisCos Ordered To Stop New Electricity Tariff For Two Weeks

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Electricity distribution companies were on Tuesday ordered by the Nigerian Electricity Regulatory Commission (NERC) to suspend the implementation of the new electricity tariffs they introduced on September 1 for two weeks.

The suspension order No. NERC/209/2020 dated September 28 was signed by the Chairman of the commission, James Momoh, and the Commissioner for Legal, Licensing and Compliance, Dafe Akpeneye.

The commission noted that the suspension order would last between September 28 and October 11 when it shall cease to have effect.

During the period, NERC said “all tariffs for end-use customers and market obligations of the DISCOs during the 14-day suspension shall be computed on the basis of rates applicable as at 31 August, 2020.”

Recall that on September 1, NERC, pursuant to Sections 32 and 76 of the Electric Power Sector Reform Act, approved the Multi-Year Tariff Order 2020 for the 11 successor electricity distribution companies.

According to the commission, the primary objectives of the MYTO 2020 Order was to ensure that rates charged by the DisCos were not only fair to customers, but also sufficient for the DisCos to operate efficiently to recover the full cost of their activities, including a reasonable return on the capital invested in the business.

The affected DisCos are the Abuja Electricity Distribution Company Plc, Benin Electricity Distribution Company Plc, Enugu Electricity Distribution Company Plc, Ibadan Electricity Distribution Company Plc, Jos Electricity Distribution Company Plc, Kaduna Electricity Distribution Company Plc, Kano Electricity Distribution Company Plc, Eko Electricity Distribution Company Plc, Ikeja Electric Plc, Port Harcourt Electricity Distribution Company Plc and Yola Electricity Distribution Company Plc.

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After the approval of the new tariffs by NERC, the 11 DisCos did not waste time to hike their electricity rates, which has now been in operation for about four weeks.

NERC had, however, said the hike would not affect consumers who do not get daily supply of electricity cumulatively for 12 hours a day for a month.

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