As a result of the tariffs increase in electricity, the 11 distribution companies in the country are allowed to collect a total of N417.09bn from their customers from September to December.
The Discos had early this month announced what they called ‘new service reflective tariff’, which took effect from September 1, with the tariffs being charged residential consumers receiving a minimum of 12 hours of power supply rising by over 70 per cent.
The amounts recoverable by the Discos through the allowed end-user tariffs range from 61 per cent to 90 per cent of the total revenue required, according to the Nigerian Electricity Regulatory Commission.
The tariff shortfall, which is the difference between the Discos’ revenue requirement and the amounts they are allowed to recover from their customers by the regulator, will be funded by the Federal Government.
According to the Nigerian Electricity Regulatory Commission, Ikeja Disco is allowed to recover N66.52bn (90 per cent of its total revenue requirement) from September to December, a NERC document showed.
While the Federal Government would fund a tariff shortfall of N104.5bn that will be recorded by the Discos in the four-month period.