The Nigerian Electricity Regulatory Commission (NERC) has directed Distribution Companies (DISCOs) to submit their investment plans before any electricity tariff review can be considered.
This comes amid calls for an increase in electricity tariffs to reflect current economic conditions.
According to NERC’s latest order, signed by Chairman Sanusi Garba, electricity tariffs are reviewed every five years under the Multi-Year Tariff Order (MYTO) framework. The review ensures the efficiency and sustainability of the power sector.
NERC stated that one year before a major tariff adjustment, it would notify all licensees and request them to submit applications for a tariff review within 120 days. These applications must include audited financial statements, investment plans and records of customer consultations.
Once all submissions are received, NERC will develop a consultation paper within 90 days, outlining the basis for the tariff review. The paper will cover proposed capital investments, service improvements, new connections and loss reduction plans. It will then be published for public feedback, with a 21-day period for stakeholders to submit their comments.
Following this, NERC will review all feedback and conduct a Rate Case Hearing within 90 days. A final decision on the tariff review will be made within 30 days after the hearing. Any approved tariff changes must be communicated to customers via DISCOs’ official channels.