Nigeria’s Electricity Distribution Companies (DisCos) are contemplating a potential 25% increase in electricity tariff if they fail to secure approval for a 40% hike from the National Electricity Regulatory Commission (NERC) and other stakeholders.
Insider information revealed this after a series of negotiations between the DisCos, NERC, and other stakeholders in Abuja, the Federal Capital Territory.
In a recent report by Paparazzi Online, it was disclosed that 11 DisCos approached NERC seeking a review of electricity tariffs. They cited losses incurred due to fluctuating exchange rates and challenging economic conditions. The DisCos emphasized the necessity of a rate review to accommodate changes in macroeconomic parameters and other factors impacting service quality, operations, and sustainability.
However, the prospect of the tariff hike has sparked outrage among Nigerians, who are already burdened by soaring petrol prices, elevated food costs, and increased transport fares triggered by the recent fuel subsidy removal.
In response to the public outcry, the Nigerian Senate has urged the Federal Government to step in and suspend the proposed electricity tariff hike initiated by the DisCos. Widespread criticism and protests ensued as consumers argued that the timing was inappropriate given the prevailing economic realities.
Initially scheduled to commence on July 1, the tariff hike was later put on hold by some DisCos pending official approval from NERC. Despite this suspension, concerns remain among consumers that the tariff increase may still be implemented discreetly.
The situation remains tense as stakeholders continue to grapple with finding a viable solution that balances the financial sustainability of DisCos with the welfare of Nigerian citizens, who are already facing economic hardships.
