Electricity: DisCos Announce Compliance with NERC Directive on Reduction of Tariff

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Indications have emerged that power distribution companies in Nigeria might have been complying with the directive of the Nigerian Electricity Regulatory Commission (NERC) to suspend implementation of electricity tariff increase.


According to a statement on Thursday, the Abuja Electricity Distribution Company (AEDC) said it has suspended the tariff hike until further directives by the regulatory body.


The statement was signed by AEDC’s General Manager, Corporate Communications, Oyebade Fadipe.


“We are delighted to inform you that AEDC has suspended the service reflective tariff in strict compliance with the NERC Order of September 28, 2020. Customers who are on the prepaid meter diet would have noticed this by now,” the statement said.


“Modalities for the alignment of the accounts of customers on the pre- and post-paid platform in line with the order and such other orders that may be made is also in progress.”



Earlier, the Nigerian Electricity Regulatory Commission (NERC) had ordered the 11 electricity distribution companies (DisCos) to suspend for two weeks the implementation of the new electricity tariffs they introduced on September 1.


The decision came against the backdrop of the agreement reached by Nigerian government and labour unions on Sunday, as part of measures to halt a scheduled nationwide strike by labour.


NERC’s suspension order No. NERC/209/2020 dated September 28 was signed by the Chairman of the commission, James Momoh, and the Commissioner for Legal, Licensing and Compliance, Dafe Akpeneye.


The commission said the suspension order would last between September 28 and October 11 when it shall cease to have effect.


During the period, NERC said “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.”


On September 1, NERC, pursuant to Sections 32 and 76 of the Electric Power Sector Reform Act, had approved the Multi-Year Tariff Order 2020 for the 11 successor electricity distribution companies.


DisCos Comply


Eko Electricity Distribution Company, on Friday, also announced the suspension of the new tariff.


“This is to inform our esteemed customers on the suspension of the service reflective tariff with effect from September 28 to October 11. Our customers are encouraged to make payments via https://t.co/e5ZSqKyLnF, accredited payment partners and EKEDC Cash Offices,” the electricity company said.


Ikeja Electric, on its part, said it has complied with NERC directives to suspend the tariff hike for two weeks.



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Ibadan Electricity Distribution Company, IBEDC, in its message, also said it has suspended the increase and reverted to the old tariff.


Similar announcements were made by DisCos in Enugu, Yola, Kaduna, and others.


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