Following the nationwide outcry that welcomed the increase in electricity tariff, the Nigerian Electricity Regulatory Commission (NERC) has ordered the Electricity Distribution Companies (DisCos) to suspend the 2020 Multi-Year Tariff Order (MYTO) service based tariff.
The order which takes effect on September 28th, 2020 will, however, cease to take effect on 11th October 2020.
The Commission stated this in the Order uploaded via its website on Tuesday night and jointly signed by its Chairman, James Momoh and Commissioner, Legal Licensing and Compliance, Dafe Akpeneye.
In the Order, the Commission said it issued MYTO 2020 for the 11 DisCos, which took effect on 1st September 2020 to ensure 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.
However, it said following a joint communique issued by the Federal Government (FG) and the labour unions, the FG 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.
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It said: “Section 33 of EPSRA provides that “the 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 on conflict with this Act or the Constitution of the Federal Republic of Nigeria.”
It stressed that the Secretary to the Government of the Federation, Minister of Power and other Ministers were part of the FGN team that issued the communique which the Commission duly accepts as a general policy direction in accordance with section 33 of EPSRA.
“The Commission hereby suspends for a period of 14-days, with effect from 28 September 2020 to 11 October 2020, the MULTI-YEAR TARIFF ORDER 2020 that was issued to the following DisCos,” it said.
To this end, it stated 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 31 August 2020.
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