NERC delegates tariff determination to consumers, distribution companies

The Nigerian Electricity Regulatory Commission (NERC) has disclosed that it is ceding part of its regulatory responsibilities with regards to transparent determination of appropriate tariff payable by consumers in Nigeria’s electricity industry to both consumers and distribution companies in the sector, This Day reports.

NERC said at the end of the April edition of the monthly meeting of heads of operators in the country’s electricity industry in Abuja that its decision on the option of joint consultation and determination of electricity rates by consumers and distribution companies was based on the need to foster transparency and inclusiveness in the way electricity rates are decided and paid in the sector.

Chairman of NERC, Dr. Sam Amadi, who stated this on Wednesday while briefing journalists on the outcome of the meeting explained that from the recent disagreements on its review of the Multi Year Tariff Order (MYTO 2.1), consumers and distribution companies would now have to sit down together to discuss and determine a mutually acceptable cost-reflective tariff to be paid in the sector.

Amadi noted that NERC which would take up an independent umpire role in the process, would also review the propositions and indices presented by the distribution companies during and after the consultation with consumers before signing off the mutually agreed tariff to be used by the distribution companies.

Amadi also disclosed that three electricity distribution companies — Ikeja, Eko and Ibadan — have initiated concrete steps to procure additional power from embedded sources to cover up for the shortfall in the amount of electricity supplied to them from the national grid.

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