Isaac Anumihe, Abuja
Sequel to the agreement with the Federal Government to defer the tariff hike for 14 days, Nigerian Electricity Regulatory Commission (NERC), yesterday, directed the 11 distribution companies to suspend the Multi Year Tariff Order (MYTO) 2020 that was issued to them earlier.
The DisCos include, 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.
According to the directive, the suspension which took effect from September 28, 2020 will terminate on October 11, 2020 adding that 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 August 31, 2020.
“The Commission, pursuant to sections 32 and 76 of the Electric Power Sector Reform Act (“EPSRA”), issued the Multi-Year Tariff Order 2020 for the 11 successor electricity distribution companies (“DisCos”) with effect from September 1, 2020. One of the primary objectives of the MYTO 2020 Order is ensuring that rates charged by DisCos are fair to customers and are sufficient to allow DisCos that operate efficiently to recover the full cost of their activities, including a reasonable return on the capital invested in the business.
“Following a joint communique issued by the Federal Government of Nigeria (“FGN”) and the labour unions, the FGN agreed that the recent review in electricity tariffs would be suspended by the commission for a period of 14 days to further consultations and finalisation of negotiations between the parties.
“Section 33 of EPSRA provides that “he, Minister, may issue general policy directions to the commission on matters concerning electricity, including directions on overall system planning and coordination, which the commission shall take into consideration in discharging its functions under section 32(2), provided that such directions are not in conflict with this Act or the constitution of the Federal Republic of Nigeria.