Electricity Tariff: DisCos to meet with NERC to demand 40% hike approval next week

Electricity consumers are yet to breathe a sigh of relief as new information indicates that electricity distribution companies (DisCos) are still pursuing the Federal Government's approval to increase tariffs.

In the last few weeks, there have been speculations of a 40% tariff hike by the DisCos, who claimed to have made over 40% losses due to escalating petrol prices, fluctuating exchange rates, and other economic conditions.

Some DisCos had backed down on the proposed tariff increase, revealing that the power sector's regulatory agency, National Electricity Regulatory Commission (NERC), was yet to approve.

The proposed tariff surge had sparked an outcry by Nigerians, who were already suffering the higher petrol prices, food prices, and rise in transport fares, sparked by the recent removal of fuel subsidy.

According to reports by The Nation, the DisCos are scheduled to convene with NERC in Abuja next week.

Although senior officials from two DisCos confirmed the upcoming meeting, they refrained from disclosing the agenda.

However, it has been gathered that the primary focus of the discussion would be the proposed increase in tariffs.

Reliable information suggests that the NERC has set up a meeting involving all 11 DisCos and other vital stakeholders in the electricity supply chain.

The discussion will also encompass strategies for DisCos to enhance their revenue, particularly in light of a substantial 40% loss, as well as their challenges in meeting performance targets.

According to sources, the scheduled meeting will occur from Monday to Friday. In addition, the NERC has arranged meetings with crucial power institutions, including the Transmission Company of Nigeria (TCN) and Generating Companies (GenCos).

NERC has planned to conduct meetings on Monday and Tuesday involving Managing Directors and senior management representatives from DisCos, GenCos, and TCN.

Subsequently, on Wednesday and Thursday, the focus will shift towards engaging with significant electricity consumers, companies, suppliers, and service providers, including gas suppliers, among other participants.