Power distribution companies in the Federal Republic of Nigeria have written to the country’s electricity regulator, NERC, seeking a review of electricity tariffs to reflect changes in macroeconomic parameters.
The power distribution companies cited changes in factors including the increase in the exchange rate, which is about N785/$1, and the inflation rate at 22.41 per cent in May 2023 among others, stating that these should be reflected in the tariff as the last tariff increase was benchmarked on N400/$1 being the official exchange.
Consequently, the regulator, Nigeria Electricity Regulatory Commission (NERC), has issued a notice to stakeholders inviting comments on the request by the distribution companies.
“Under Section 116 (1) and 2(a&b) of the Electricity Act 2023 and other extant rules, the eleven (11) successor electricity distribution companies (“DisCos”) have applied 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.
“Interested stakeholders are advised to review and take into consideration the excerpts of the Rate Review Applications filed with the Commission by the respective licensees.
“As part of the rule-making process and in the exercise of the powers conferred by the Electricity Act, the Commission shall conduct a Rate Case Hearing on the applications before making a ruling.”
According to the Commission, the request to participate shall include an explanation of the person’s interest in the proceeding and how the party would be affected by the outcome of the Application; and a description of the party’s concerns, observations comments and/or objections to the application.
“Any person wishing to participate in the proceedings as an intervenor should forward his/her application to [email protected] before the close of business on July 20, 2023.”
Source: https://energynewsafrica.com
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