The Nigerian Electricity Regulatory Commission (NERC) has called for inputs from the public and other stakeholders over the request by the 11 electricity distribution companies (DISCos) for electricity tariffs hike.
Although the organised labour has continued to resist any attempt to further worsen the economic conditions of workers through electricity tariffs hike, NERC said the DisCos have continued to push for a review with the formal filing of an application.
Recently, the Nigeria Labour Congress (NLC) reiterated its opposition to any planned increase in electricity tariffs.
The NLC president, Joe Ajaero, said its opposition was informed by the reality of the lack of capacity to pay by the average workers in view of their declining economic conditions as a result of the recent decision by the Federal Government to remove subsidy of petrol, which has triggered massive inflation in the cost of goods and services across the country.
Ajaero also raised the issue of the poor quality of service delivery by the DISCOs despite the previous review of tariffs.
But the electricity sector regulator said the DISCOs demand for the review of existing rates was based on the need to take into consideration the macroeconomic parameters and other factors impacting their service delivery and operational sustainability.
The DISCos have always cited issues bordering on the escalating exchange rate is high between the Naira and the dollar and other international currencies and rising inflation rate in the country.
On Friday, the Naira exchanged for N795.90 to the dollar, while the prevailing rate inflation as of May 2023 was about 22.41 percent.
NERC said in a publication on Friday titled: “Notice of Application for Rate Review By the Electricity Distribution Companies” that the DISCos were making a case for the review of the tariffs to reflect the current realities as the previous tariffs were based on exchange rate official benchmark of N400 to the dollar.
In line with the guidelines of the Multi-Year Tariff Order (MYTO) 2022, the current tariffs were benchmarked against the exchange rate of N441 to the dollar subject to revision to about N750 to the dollar.
The document read: “Pursuant to Section 116 (1) and 2(a&b) of the Electricity Act 2023 and other extant rules, the 11 successor electricity distribution companies (“DisCos”) have filed an application for rate review with the Nigerian Electricity Regulatory Commission.
“The request for rate review is premised on the need to incorporate changes in macroeconomic parameters and other factors affecting the quality of service, operations and sustainability of the companies.
“The Commission hereby invites the general public for comments on the rate review applications by the distribution licensees.”
The regulator urged interested stakeholders to ensure that their review and views took into consideration the excerpts of the Rate Review Applications filed with the Commission by the respective licensees.
NERC as part of the rule-making process and in the exercise of the powers conferred by the Electricity Act, it would conduct a Rate Case Hearing on the applications before taking a final decision on whether to grant the request by the DISCOs or not.
The Commission urged those interested in giving their opinions to explain their interest in the proceeding and how the party would be adversely affected by the outcome of the request by the DISCOs as well as a description of their concerns, observations and/or objections to the request.
“Any person wishing to participate in the proceedings as an intervenor should forward his/her application to tariff@nerc.gov.ng before close of business on July 20, 2023,” the publication said.
