Feb 10, 2025 (Vanguard/All Africa Global Media via COMTEX) --
The Nigerian Electricity Regulatory Commission (NERC) has directed the Distribution Companies of Nigeria, DISCOs, to make available their investment plans to justify their quest for tariff reviews.
This is coming on the heels of a clamor for an upward review of electricity tariffs to match-up current economic realities.
NERC, in its latest order signed by its Chairman, Sanusi Garba, said electricity tariffs are to be reviewed every five years based on the provisions of the Multi-Year Tariff Order (MYTO) methodology, adding that all tariff assumptions are reviewed to ensure the industry's viability and efficiency.
The Commission explained that one year before a major tariff hike, it would issue a notice to all licensees about its intention while, requesting them to submit applications for the review of tariffs supported with necessary documentation within 120 days of the notice.
According to him, "The commission shall, one year before the expiration of the major tariff review order in force or as may be considered necessary, issue a notice to all licensees about its intention to commence the process for a major review of the existing tariff.
"The notice shall be published in three national dailies and on the website of the commission.
"The Notice shall request for submission of applications for the review of tariffs supported with documentation that includes but is not limited to audited financial statements, budgets, investment plans (in line with prevailing guidelines on Performance Improvement Plans), and proof of wide consultation with customers in the licensees' service area concerning the proposed filing of the application for tariff review and any other information as deemed necessary by the commission.
"However, for a review to be done, all applications from licensees must be completed and a consultation paper developed no later than 90 days after the deadline for the submission of the applications."
NERC added that the consultation paper developed by the commission shall outline the basis for the tariff review applications by the licensees, as the paper would also include their proposals on capital investments, service improvements, new connections, loss reductions, reset of tariff assumptions if any and possible impact on rates payable by the affected customers.
He said, "The consultation paper shall be published on the commission's website and public notices issued soliciting comments with a timeline of 21 days for submission by stakeholders.
"The commission shall within 90 days from the publication of the consultation paper review all comments and schedule and conclude a Rate Case Hearing, having regard to the stakeholders' responses to the consultation paper."
He also, added that it would consider and approve a major tariff review order within 30 days from the date of the rate case hearing and proper consideration of the outcomes of the general stakeholders' presentation.
"Any licensee whose tariffs have been reviewed shall communicate the outcome of the tariff review to its customers via its website and other communication channels."
COMTEX_462648859/2029/2025-02-10T06:41:01
by Ediri Ejoh
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