NERC has not approved any new electricity tariff – Chairman

NERC has not approved any new electricity tariff – Chairman

The Chairman of Nigerian Electricity Regulatory Commission (NERC), Mr Sanusi Garba, says the commission has not approved any new tariff rate review in recent times.

 

Garba told newsmen in Abuja on Friday that the last tariff review was approved on Dec 31, 2021 and it became effective in February 2022.

 

“I want to, on behalf of the management of NERC, clearly state that as of today, we have not approved any rate review and there is no indication that any Electricity Distribution Company (DisCo) is increasing its tariff.

 

“If you notice that the rate you buy tariff has changed within the last one to three weeks, we want evidence. The information posted on the NERC website was the last tariff rate review in December 2021.

 

“Our function is to approve applications for tariffs for distribution companies, and we have not received any.

 

“We have clearly said that we have an obligation by law to do minor review every six months to take care of inflation, FOREX and so on,” he said.

 

On the issue of ‘Eligible Customers Regulations’, Mr Musiliu Oseni, the Commissioner, Market Competition and Rates, NERC, said that the regulation was still in place.

 

The eligible customer regulation permits electricity Generation Companies (GenCos) to sell electricity directly to customers whose consumption is more than 2megawatts/hour over the course of one month.

 

Oseni said that the regulation and the framework were also in place, adding that the commission had issued a memo to the market operators to stop the recognition of certain potential customers.

 

He said that the customers were stopped because at that time, they had not secured the approval of the commission.

 

“As of today, we have a few customers that have been approved as eligible customers, pending the review of the necessary documentation of other customers.

 

“Some of the customers that are yet to secure approval had some challenges, which include the inability of their potential generator to sell additional capacity to them.

 

“Under that framework, many of the generators had a contract with Nigeria Bulk Electricity Trading Company (NBET), and you cannot contract the same capacity twice,” he said.

 

Oseni said that such generators were already making efforts to renegotiate the contracted capacity made with NBET, in order to free some capacity to sell to eligible customers.

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