Electricity commission considers tariff review for 11 DisCos, seeks stakeholders input

The Nigerian Electricity Regulatory Commission (NERC) has said it was considering the Extraordinary Tariff Review process for the 11 Electricity Distribution Companies (DisCos), noting that the review was under the provisions of the Electric Power Sector Reform Act (EPSRA).

It said the notice was aimed at soliciting comments from the general public and stakeholders on the proposed reviews, and advised them to send their comments to NERC’s headquarters in Abuja within the next 21 days.

The regulator disclosed this in a notice to the general public and industry stakeholders posted on its website on Monday.

NERC said extraordinary tariff reviews are carried out when industry parameters change from those used in operating tariffs to such an extent that a review becomes urgently needed to maintain the viability of the industry.

Also, the commission said it would commence the processes for the July 2021 Minor Review of the Multi-Year Tariff Order (MYTO-2020), done every six months, and would put changes in inflation, foreign exchange, gas prices and available generation capacity into consideration.

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The regulator said it would also consider Capital Expenditure (CAPEX) required for the evacuation, and distribution of the available generation capacity by EPSRA and other extant industry rules.

“Further to the above, the commission held series of public hearings and stakeholder consultations in the first quarter of 2020 on the Extraordinary Tariff Review Applications of the 11 DisCos to consider their respective five-year Performance Improvement Plans (PIPs).

“However, the evaluation of the DisCos’ requests for review of the CAPEX proposed in their PIPs could not be concluded for the consideration of the commission during the Minor Reviews were undertaken in 2020.

“Specifically, Section 21 of the MYTO – 2020 Order provides for consideration of DisCos’ CAPEX application upon further scrutiny and evaluation of the investment proposals,” the notice read.

Meanwhile, NERC said the notice was issued in compliance with the provisions of EPSRA, the Business Rules of the commission and the Regulations on Procedures for Electricity Tariff Reviews in the Nigerian Electricity Supply Industry.

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