Posted by FN Editor | 4 years ago | 2,326 times
Power distribution companies and the Transmission Company of Nigeria Plc have applied to the Nigerian Electricity Regulatory Commission for a review of their tariffs.
NERC, in a document seen by Punch said the request for rate review was premised on the need to incorporate changes in macroeconomic parameters and other factors affecting the operational efficiency of Discos and TCN.
The commission, in its December 2019 Minor Review of Multi Year Tariff Order 2015 and Minimum Remittance Order for the Year 2020 for the 11 Discos, had said on January 4 that consumers would start to pay more for electricity from April 1, 2020.
Following the public outcry that greeted the announcement, the House of Representatives asked the Federal Government to suspend the planned upward review of electricity tariff.
NERC said in the document that the extraordinary tariff review filed by the 11 successor electricity distribution licensees and the TCN “seeks to achieve ensure that the utilities recover their full efficient costs with reasonable return on the assets invested in the business.”
It said the review was also aimed at ensuring the recovery of the Discos’ revenue requirement through rates that are fair.
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