The Nigerian Electricity Regulatory Commission (NERC) on Monday denied the upward review in its Multi-Year Tariff (MYTO) dated 31st December 2019, as the Chairman, Prof. James Momoh said that there is no immediate tariff increase for customers.
The order which its reports went virile in both conventional and social media was titled: Titled: โNERC in the matter of the December 2019 minor review Multi Year Tariff Order (MYTO) for Abuja Electricity Distribution Company Plcโ, in the case of the AEDC.
The commission said that โthis order supersedes other orders issued on the subject matter, and shall take effect from 1st January 2020 and shall have effect on the issuance of a new Minor Review Order or an Extraordinary Tariff Review Order by the NERC.โ
According to the order, โthe Federal Governmentโs updated Power Sector Recovery Program does not envisage an immediate increase in end-user tariffs until 1st April 2020 and a transition to full cost reflectivity by end of 2021.
โIn the interim, the Federal Government has committed to funding the revenue gap arising from the difference between cost reflective tariffs determined by the commission and the actual end-user tariffs payable by customers in line with the โฆโ
The reporters that concluded that the commission had already done its consultation before giving the above timelines were surprised when Momoh said otherwise in Abuja on Monday.
Meanwhile, the commission was expecting journalists that attended its pre-conference press conference on the 11th edition of the International Conference on Energy, Power Systems Operations and Planning (ICEPSOP), an initiative of the Howard University U.S.A with sponsorship from the National Science Foundation (NSF) of the United States of America it is organizing and hosting in Abuja, to restrict themselves to the business of the day was taken aback by the reportersโ insistence on the clarifications on the MYTO review.
Reacting to the review, he said that โThere is no immediate increase in tariff for customers.โ
Momoh, however, insisted that the review was the main mandate that the commission statutorily carries out every six months.
The widely reported order, according to him, was only a review that is subject to public consultation.
He added that in the next three months the commission will engage the public on a consultation.
His words: โthe proposed tariff review is what we are mandated to do as a regulator. We did the first one around June, January is here, we have done it. We have no option than to do our jobs. We have done the review and it is subject to public consultation. โIn the next three months, we will engage you for consultations. We have given the report card of what we saw based on all indices for doing the review. We did not say it is binding tomorrow morning. We said we are going to the second thing: consultation. โThe order is simply a communication of what we have done as a regulator looking at what it takes to increase or decrease tariff. If at the end of our meeting back and front, we say increase there is increase. If we say no increase, no increase.
โIt is going to be based on our engagement at the public forum. We are going to issue a press statement for one more time what this document (the order) in a layman language.
โThat is the one you will all work on. No increase to tariff . We are not leaving any stone on turned. We donโt want any increase without negotiations with the customers wit AEDC, with MAN.
โI am a customer too. As customers, we will pay our bills. But if you suddenly change it, I need to know why. It must be for the good of everybody. Donโt forget, service must improve.โ
The chairman noted that the commission will in the next few months put a ceiling to what amount the Discos can charge their customers under the estimated billing regime.
He added that it was to the advantage of the distributors to provide meters for their customers.
His words: โOur minds, acts are solidly behind making sure that Nigerians are provided electricity, Nigerians are metered and that Nigerians who need meters are already known. We will do everything to ensure that DisCos provide meters to our customers. โFailure to do so, we have a back up plan, which is one of our regulations that will be out in the next few months. It will state the maximum amount you can charge the customers for which you have no been able to provide meters. In fact, it is to their (DisCos) advantage to provide meters.โ
