Why Discos Get 85% Collection Order From NERC 


The Nigerian Electricity Regulatory Commission (NERC) has directed power distribution companies to collect an average of about 85.84 per cent of the newly increased electricity tariffs from affected customers between September and December.

It disclosed this in its latest orders in the matter of the Extraordinary Review of Multi Year Tariff Order 2015, which were issued to the 11 Discos operating across the country. Power consumers, however, kicked against the tariff hike and the decision by NERC to grant approval to Discos to collect as high as over 80 per cent of the newly increased tariff from customers.

In the orders to the Discos, which were jointly signed by NERC Chairman, James Momoh, and a Commissioner, Dafe Akpeneye, the commission stated that the new tariffs took effect from September 1.

Findings from the various orders to the 11 Discos showed that after NERC considered the key indices used in evaluating the tariff increase applications of the power firms, it approved an average of about 85.84 per cent as what the Discos should collect from customers affected by the hike in tariffs.

For the Abuja Electricity Distribution Company, for instance, the NERC said its end-use cost-reflective tariff from September to December was N57.01 per kilowatt-hour and put the AEDC end-use allowed tariff during this period at N50.05/kWh.

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