COVID-19: NERC Suspends Electricity Tariff Hike

Following pressures being mounted by the public, the Nigerian Electricity Regulatory Commission (NERC), yesterday, announced the suspension of electricity tariff hike expected to commence on April 1, 2020 to next three months, June 30, 2020.
NERC, in an Order on the transition to cost reflective tariffs in the Nigerian Electricity Supply Industry (NESI) tagged /198/2020, signed by the NERC Chairman, Prof. James Momoh, and the NERC Commissioner for Legal, Licencing and Compliance, Dafe Akpeneye, yesterday, said it was due to global effects of the Coronavirus (COVID-19) and its impact on the average Nigerian.
“There shall be no increase in tariffs of end-use customers on April 1, 2020. This Order shall take effect from April 1, 2020 and shall cease to have effect on the issuance of a new Order by the NERC.”
The commission, which had planned the hike from today, said it is aware of the adverse effects of the COVID-19 pandemic on the global economy and its impact on the average Nigerian.
It noted that the previous Order on the December, 2019 minor review of the Multi Year Tariff Order (MYTO) 2015 and the Minimum Remittance Order (MRO) for 2020 “shall remain in force until June 30, 2020 when a new MRO shall be issued.”
NERC said the 11 DISCs submitted their Performance Improvement Plans (PIPs) and also filed applications for an extraordinary tariff review with public hearings held from February 25 to March 9 for the DISCOs.
There was also a hearing on providing tariff for ancillary services for the Transmission Company of Nigeria (TCN) on the national grid.
NERC said the stakeholders’ views show consumers are willing to pay appropriate rates for services rendered by the DisCos but must be of quality and with adequate metering.
It also said the COVID-19 pandemic has obstructed importation of components for local meter assembly to supply consumers under the Meter Assets Provider (MAP) Regulation, and that it was discussing with MAP and DISCOs to review the expectations.
NERC then gave the DISCOs 21 days from today, to submit new PIPs on how they can recover their costs prudently with marginal profit by June 30, 2021 especially on how customers will be guaranteed improved services.
The DISCOs were also directed to provide smart meters for their 11 kilovolts (kV) and 33kV feeders by June 30, 2020 so they can send real time data to the Commission.
Earlier, the Nigeria Labour Congress (NLC) had condemned and totally rejected any plan to inflict further pains on Nigerians by the Nigerian Electricity Regulatory Commission (NERC).
The NLC President, Comrade Ayuba Wabba, in a statement, yesterday, said that such action would only add more pains to Nigerians as the country tackles the dreaded Coronavirus disease.
Wabba bemoaned that while other countries are battling the COVID-19 pandemic and expanding social welfare and putting in place economic stimulus, including distribution of free foods, free healthcare services, sanitary kits, utility bills reduction, debt moratorium, and cash support to insulate their citizens from the harsh realities of the fight against the novel Coronavirus, “our own case in Nigeria cannot be different,” he added.
He further noted that “the concerns in the public domain are not helped by reports that the NERC has not issued any reversal order to Electricity Distribution Companies (DISCOs) on the planned tariff increase in power utility.
“The leaders of our affiliate unions were unanimous in rejecting the planned increase in electricity tariff during our recent interactive session with NERC in Kano,” he added.
He stressed that “any increase in electricity tariff would only convey a deafening expression of insensitivity to the plight of the Nigerian people who are currently dealing with the social scare, income hemorrhage, economic squeeze and mortal dread of COVID-19.”
He noted that this is the right time to show Nigerians that their lives matters.
He added that “If there is any time to show that the very essence of government is the security and welfare of citizens, it is now.”
While he noted that Nigerian workers find tremendous succour in the altruism shared by President Muhammadu Buhari in his address, he said, “we urge the Nigerian Electricity Regulatory Commission not to embark on any fruitless adventure that would cast aspersion on the good intentions of Mr. President.”