Authorities of the Nige
rian Electricity Regulatory Commission (NERC) have declared that the tariff to be paid on electricity would now be jointly determined by both consumers and the Distribution Companies (DISCOS).
The NERC Chairman, Dr Sam Amadi, disclosed this last week in Abuja after meeting with heads of the various power companies.
Amadi said the decision was to ensure transparent determination of appropriate tariff payable by consumers.
According to the NERC boss, the commission would play the role of an independent umpire in the process as it would review the prepositions and indices presented by the distribution companies after  the consultation with consumers before signing the mutually agreed tariff to be used by the distribution companies.
He said the initiative would put a restraint on undue and unreasonable tariff reviews because the DISCOs would know that they would have to confront consumers with tariff proposals.
This, according to him, would put the consumers in good knowledge of the operations of the DISCOs thereby promoting more enlightenment on the quality of service and corresponding tariff to be paid.
Amadi explained that the responsibility for tariff setting, which includes generating the data would be that of the DISCOs because they know the actual cost of serving their consumers, their consumers  profile and how those costs would be applied.
“We want them to interface more with their consumers because these are the people who would pay the tariff and they should be able to participate in deciding their rates”, the NERC chairman said.
He noted that the system would give NERC a first check on what is coming such that when the proposals are sent, the commission would conduct the public to determine the authenticity of such proposals.
In his reaction, the Managing Director of Ikeja Electricity Distribution Company (IKEDC), Abiodun Ajifowobaje, said the step would provide opportunity for DISCOs to transparently convince consumers on the need for cost-reflective electricity tariff.
He said passing the tariff through consumers would eliminate instances of disputes as was recently witnessed in the review of MYTO 2.1 by NERC.
“The good thing about the tariff regime now is that NERC has given us the power to go and prepare our own tariff and submit, and they will review it and approve where necessary”, he remarked.

Chris Oluoh