Close Menu
    Facebook X (Twitter) Instagram
    Facebook X (Twitter) Instagram
    SweetCrudeReportsSweetCrudeReports
    Subscribe
    • Home
    • Oil
    • Gas
    • Power
    • Solid Minerals
    • Labour
    • Financing
    • Freight
    • Community Development
    • E-Editions
    SweetCrudeReportsSweetCrudeReports
    Home » NERC warns DisCos to not mention it involvement in new tariff hike

    NERC warns DisCos to not mention it involvement in new tariff hike

    June 29, 2020
    Share
    Facebook Twitter LinkedIn WhatsApp
    *Electricity distribution transformer.

    *DisCos fight back

    OpeOluwani Akintayo

    Lagos — Association of Nigerian Electricity Distributors, ANED has called out the Nigerian Electricity Regulatory Commission, NERC over attempt to wash its hands off the newly increased electricity tariffs by issuing them warning letters to the effect.

    ANED is the umbrella body for the DisCos.

    Mr Sunday Oduntan, the Executive Director, Research and Advocacy, ANED on Sunday described the threat as “unfair”, adding that the tariff hike was done in agreement with the market regulator.

    The DisCos last week, hinted of their intentions to kick start the new tariff from July 1.

    “We are in a regulated sector. We cannot take decision about a very critical aspect of the sector like tariff without a nod from the regulator (NERC).

    “However, what has happened in recent days is that our regulator is warning us not to mention their name or the Federal Government in any of our communication about the tariff increase with our customers. This is certainly very unfair.”

    “Many stakeholders have expressed their concern at the unusual silence of our regulator, NERC on the upcoming increase and it looks like a unilateral decision by the DisCos.

    “We will like to inform Nigerians that tariff review (upward or downwards) is the primary responsibility of NERC as our regulator,” he said.

    Oduntan said the DisCos were required to submit their proposals, adding that NERC had the final say.

    Economist tasks NERC on technical audit of electricity assets

    According to him, the DisCos were surprised to receive a letter from NERC warning them not to mention their name or that of the Federal Government in any public communications on tariffs.

    “While it is our obligation to communicate the increase, it is also important for customers to know that it is following standard processes of tariff adjustments in the sector with approvals from NERC and the Federal Government.

    “As DisCos, we believe in the rule of law. We will only carry out lawful approval and instructions by our regulator.”

    “The proposed increase and the timing of the increase in tariffs was done by NERC. It is their statutory responsibility. DisCos alone cannot fix and approve electricity tariffs,” he said.

    Oduntan said that the DisCos were sensitive to the feelings and yearnings of their customers during this period of COVID-19.

    He said to demonstrate their sensitivity, the DisCos, in conjunction with the National Assembly suggested a two-month free electricity supply for residential customers.

    Oduntan said the proposal was not approved by the Federal Government due to paucity of funds occasioned by the reduction of national incomes from sales of crude oil.

    “The fact that the action is deliberately made to look unilateral is capable of creating public resistance, effectively setting DisCos up to fail.

    “All Discos had started communicating increment in tariffs to take effect July 1″.

    “The communication is geared at enlightening customers about the details of the service based tariff increase to ensure customers were fully aware about how it pertained to them and the supply band they fall under.

    “The truth is that we are the public facing arm of the sector, but what we collect is shared by everybody, including NERC.

    “Our interest is in the nurturing of a commercially viable power sector. Political considerations and bickering will certainly not take us there.”

    Reacting to the allegation, Mr Mike Faluseyi, the Assistant General Manager , Government and External Industry Relations, NERC said ANED is not their licensee, adding that the Commission does not do their regulations on the pages of newspapers.

    “They are Nigerians, they are free to comment and they have made their comment,” he said.

    Follow us on twitter

    Related News

    Rivers, Bayelsa left out as FG delivers life jackets to Kwara over boat mishaps

    Israel to resume natural gas exports when military deems it’s safe, energy minister says

    Africa’s nuclear renaissance: World Bank greenlight ignites a new era

    E-book
    Resilience Exhibition

    Latest News

    AfDB strengthens capacity to tackle illicit financial flows

    June 23, 2025

    TCN inaugurates Performance Improvement Plan Committee to boost power supply

    June 23, 2025

    Steelpaints combination 500 passes landmark FRP coating trials

    June 23, 2025

    FG, States, LGCs share N1.659 revenue in May 2025

    June 22, 2025

    Military efforts slash crude oil theft, as Minister hails Armed Forces

    June 22, 2025
    Demo
    Facebook X (Twitter) Instagram
    • Opec Daily Basket
    • Oil
    • Power
    • Gas
    • Freight
    • Financing
    • Labour
    • Technology
    • Solid Mineral
    • Conferences/Seminars
    • Community Development
    • Nigerian Content Initiative
    • Niger-Delta Question
    • Insurance
    • Other News
    • Focus
    • Feedback
    • Hanging Out With Markson

    Subscribe for Updates

    Get the latest energy news from Sweetcrudereports.

    Please wait...
    Please enter all required fields Click to hide
    Correct invalid entries Click to hide
    © 2025 Sweetcrudereports.
    • About Us
    • Advertise with us
    • Privacy Policy

    Type above and press Enter to search. Press Esc to cancel.