Power Distribution Companies (Discos) in the country and the Transmission Company of Nigeria (TCN) have approached the Nigerian Electricity Regulatory Commission (NERC) with a view to reviewing electricity tariffs upward again.
Reports say the new request resulted from the necessity to factor in changes in macroeconomic parameters and other circumstances influencing the efficiency of the Discos and the TCN.
The NERC had in its December 2019 Minor Review of Multi-Year Tariff Order 2015 and Minimum Remittance Order for 2020 for the 11 Discos said consumers would pay more for power, beginning from 1st April this year.
However, the House of Representatives intervened in the aftermath of a countrywide public protest, calling on the Nigerian government to shelve the proposed electricity tariff hike.
According to a document from the NERC, the planned upward review of electricity rates, mooted by the Discos and the TCN “seeks to ensure that the utilities recover their full efficient costs with reasonable return on the assets invested in the business.”
The NERC added that the review was equally intended to actualise the recovery of the Discos’ revenue requirement by means of fair electricity rates.