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Despite poor supply NERC, Discos, insist on 45% tariff increase




The Nigerian Electricity Regulatory Commission (NERC) and Distribution Companies (Discos) are insisting on 45 per cent tariff increase regardless of the recent court ruling.

While NERC has directed its lawyers to file an appeal against the court ruling that mandated it to reverse the 45 per cent increase in electricity tariff across the country, the Discos said they have also appealed the ruling and were prepared to pursue the case up to the Supreme Court if necessary.

NERC had accepted to uphold the decision of the court, but reversed its earlier stance.

Disclosing this during at a press briefing at its headquarters in Abuja on Friday, the commission said it changed its former stance after consulting with its lawyers.

The Acting Chief Executive Officer, NERC, Dr. Tony Akah, said during the briefing, that “The commission respects this decision of the court but we are dissatisfied because it represents the reversal of the commercial foundation upon which contracts for gas, hydro, coal and solar feedstock for the production of electricity have been predicated. This judgment, in our view, is a setback to the progress made so far in the electricity sector.”

Read also: Customers flood NERC with 47,127 complaints

Also, the Association of National Electricity Distributors, which is an umbrella body for the Discos, said it will continue with the 45 per cent electricity tariff increase.

According to the executive director of the body, Mr. Sunday Oduntan, Discos had already challenged the ruling and were ready to pursue the case up to the Supreme Court.

“We have no problem with the ruling but we are appealing it; because at that level, it is not final. For that reason, we are going on with our business without any distraction and we will continue to fight the case up all the way to the Supreme Court if need be. Therefore, in essence, nothing has changed.”

A Federal High Court sitting in Ikoyi, Lagos on Wednesday reversed the 45 per cent increase of electricity tariff by the NERC and the Federal Government, declaring that the hike in tariff is illegal and directed that it should be reversed immediately.

By Ebere Ndukwu …


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