We lose N14bn monthly to NERC’s tariff system –DisCos

Power distribution companies (Discos) Thursday said the capped tariff system introduced by industry watchdog, Nigerian Electricity Regulatory Commission (NERC), into electricity pricing cost them N13.9 billion in revenue loss every month.

The Discos requested realistic indices before the execution of a new value-reflective tariff regime earlier timed to kick off on 1st July.

NERC had in late June postponed the proposed tariff hike to the first quarter 0f 2020, citing the outrageous size of Nigeria’s unmetered population (60%), which it said was a “major impediment to both an immediate tariff review and revenue protection of DisCos,” among other grounds.

Read also: DisCos claim NERC approved decision to hike electricity tariff

Ernest Mupwaya, Managing Director Abuja Electricity Distribution Company stated this while making a presentation on behalf of power distributors at a public hearing arranged by the House of Representatives Committee on Power that a number of hitches must be addressed before the new tariff teed off.

“One of them is the removal of estimated billing caps. The financial impact of the Capping Order is an average loss of N13.9bn monthly, thereby, undermining or jeopardising the minimum remittance requirement.”

The initial kick-off date of the proposed tariff had been shifted by the National Assembly.

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now