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The eleven electricity distribution companies (DisCos) are advocating for a review of electricity tariff rates to align with changes in macroeconomic factors.

This comes shortly after the DisCos dismissed reports of a possible tariff increase.

According to a document obtained by Businessday from the Nigerian Electricity Regulatory Commission (NERC), the eleven successor electricity distribution companies have submitted an application for a rate review.

The request for the rate review is based on the need to incorporate changes in macroeconomic parameters and other factors that impact the quality of service, operations, and sustainability of the companies.

The DisCos argue that factors such as the increase in the exchange rate (which stands at approximately N785/$1), the inflation rate of 22.41 percent in May 2023, among others, should be considered in the tariff, as the previous tariff increase was based on an official exchange rate of N400/$1.

The document states, “In accordance with Section 116 (1) and 2(a&b) of the Electricity Act 2023 and other existing rules, the eleven successor electricity distribution companies (DisCos) have submitted an application for a rate review with the Nigerian Electricity Regulatory Commission.”

“The request for the rate review is based on the need to incorporate changes in macroeconomic parameters and other factors that affect the quality of service, operations, and sustainability of the companies.”

“The Commission invites the general public to provide comments on the rate review applications submitted by the distribution licensees.”

“Interested stakeholders are advised to review and consider the excerpts of the Rate Review Applications filed with the Commission by the respective licensees.”

“As part of the rule-making process and in the exercise of the powers conferred by the Electricity Act, the Commission will conduct a Rate Case Hearing on the applications before making a ruling.”

According to the Commission, individuals who wish to participate in the proceedings as intervenors should submit their applications to tariff@nerc.gov.ng before the close of business on July 20, 2023.