FG Orders DisCos To Suspend Electricity Tariff Hike

*As NERC Suspends Electricity Tariff

The Federal Government has ordered the Electricity Distribution Companies in the country to suspend the recent hike in tariff.

The Nigerian Electricity Regulatory Commission issued the order on Tuesday night.

This followed an agreement reached by the Federal Government and Organised Labour for the suspension of the hike in tariff for 14 days.

According to the NERC, the tariff suspension will be from September 28, 2020 to October 2, 2020.

The Order, No. NERC/209/2020, with the title: “NERC Order on the suspension of the Multi-Year Tariff Order 2020 for the electricity distribution licensees,” was signed by the NERC Chairman, James Momoh; and the Commissioner, Legal, Licensing and Compliance, Dafe Akpeneye, and addressed to the country’s DisCos.

For anyone who may have missed it, NERC has issued an Order to the DisCos suspending the recent review in tariffs for 14 days in line with the FG’s agreement with the Labour Union.

During the suspension, all tariffs shall be computed on the rates applicable as at August 31, 2020 pic.twitter.com/75D2Kg2kcv

— NERC Nigeria (@NERCNG) September 29, 2020

The Order on Suspension of the MULTI YEAR TARIFF ORDER (MYTO) 2020 released on Tuesday night and signed by the Chairman, Prof. James Momoh, said from September 28, 2020 to October 11, 2020, the DisCos must revert all charges to the tariff existing as of August 31, 2020.

This means for the next two weeks, electricity consumers having power above 12 hours who were affected by the over 100 per cent tariff hike would revert to their old charges.

NERC said following a joint communique issued by the Federal Government and the labour unions, the FG agreed that the recent review in electricity tariffs would be suspended by the Commission for a period of 14 days to further consultations and finalisation of negotiations between the parties.

It said as empowered by Section 33 of the Electric Power Sector Reform Act, EPSRA 2005, the Minister of Power, Engr. Sale Mamman can issue such directive to NERC.

The Secretary to the Government of the Federation, Boss Mustapha and Mamman were among the team that had meeting with the labour unions.

NERC said it accepted the communique as a general policy direction in accordance with
section 33 of EPSRA.

“The Commission hereby suspends for a period of 14-days, with effect from 28 September 2020 to 11 October 2020, the MULTI YEAR TARIFF ORDER 2020 that was issued to the DisCos.

“All tariffs for end-use customers and market obligations of the DisCos during the 14-day suspension shall be computed on the basis of rates applicable as at August 31, 2020,” it noted.