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NERC denies approving electricity tariff increase for DISCOs

05 December 2013, 12:18

Abuja -The Chairman, Nigerian Electricity Regulatory Commission (NERC), Dr Sam Amadi, said the commission had not approved any increase in electricity tariff or charges by electricity distribution companies (DISCOs).

Amadi made the disclosure at a media briefing on the alleged plan to increase the tariffs in Abuja on Wednesday.

“We want to make it clear that NERC has not approved any increase by any DISCO.

“However, customers who feel that they are victims of such purported increases should come forward with evidence,’’ he said.

Amadi said the commission had put in place a team to go out to the field and investigate such complaints.

He said the new owners of the DISCOs could not unilaterally increase the tariffs without the express approval of NERC.

“Companies who want to charge more for their services must apply for a rate review.

“Once this application is received by the commission, a thorough and transparent process of stakeholders engagement follows before any rate review becomes official,’’ Amadi said.

He, however, explained that the different DISCOS had different tariff rates approved for them based on their location and operational cost profiles.

Amadi recalled that the commission recently met with the new owners of the DISCOS and generating companies (GENCOs).

He said the meeting was with a view to improving service delivery and addressing issues such as shortfall in gas supply, billing system and load allocation.

Amadi attributed the current drop in electricity generation to the shortfall in gas supply, and noted that about 2 859 megawatts was unutilised capacity due to gas shortage as at December. 3.

On the non-adherence to the Multi Year Tariff Order (MYTO) by some DISCOS, he said NERC was already working with all stakeholders involved.

Amadi said this was with a view to ensure the tariff order was adhered to and the operational concerns of the DISCOs addressed.

-  NAN


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