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Tag: NERC

  • Electricity: No new tariff review approved by NERC – Chairman

    Electricity: No new tariff review approved by NERC – Chairman

    Mr Sanusi Garba, the Chairman, Nigerian Electricity Regulatory Commission (NERC), says the commission has not approved any new tariff rate review in recent times.

    Garba told newsmen in Abuja on Friday that the last tariff review was approved on Dec 31, 2021, and became effective in February 2022.

    “I want to, on behalf of the management of NERC, clearly state that as of today, we have not approved any rate review and no indication that any Electricity Distribution Companies (DisCos) is increasing its tariff.

    “If you notice that the rate you buy tariff has changed within the last one to three weeks, we want evidence. The information posted on the NERC website was the last tariff rate review in December 2021.

    “Our function is to approve applications for tariffs for Distribution companies, and we have not received any.

    “We have clearly said that we have an obligation by law to do minor review every six months to take care of inflation, FOREX, and so on,” he said.

    On the issue of ‘Eligible Customers Regulations’, Mr Musiliu Oseni, the Commissioner, Market Competition and Rates, said that the regulation was still in place.

    The eligible customer regulation permits electricity Generation Companies (GenCos) to sell electricity directly to customers whose consumption is more than 2megawatts/hour over the course of one month.

    Oseni said that the regulation and the framework were also in place, adding that the commission issued a letter to the market operators to stop the recognition of certain potential customers.

    He said that the customers were stopped because at that time, they had not secured the approval of the commission.

    “As of today, we have a few customers that have been approved as eligible customers pending the review of the necessary documentation of other customers.

    “Some of the customers that are yet to secure approval had some challenges which include that of the inability of their potential generator to sell additional capacity to them.

    “Under that framework, many of the generators had a contract with Nigeria Bulk Electricity Trading Company (NBET), and you cannot contract the same capacity twice,” he said.

    Oseni said that such generators were already making move to renegotiate the contracted capacity made with NBET to free some capacity to sell to eligible customers.

  • NERC to launch power outage reporting app

    NERC to launch power outage reporting app

    The Nigerian Electricity Regulatory Commission (NERC) on Wednesday said it would soon launch a power outage reporting application aimed at addressing complaints on power outages across the country.

    The Vice-Chairman, NERC, Dr Musiliu Oseni, disclosed this at the inauguration of Ogun Complaints Forum Office, located at Ibara Housing Estate, Abeokuta.

    Oseni said the development of the app would help NERC to ease and fast-track the process of reporting power outages and improving electricity supply in Nigeria

    “This is part of our efforts at leveraging on technology to address complaints on power outage,” he said

    He explained that the application would be integrated to the systems of the various electricity distribution companies (Discos) which would trigger alerts immediately power outage complaints were made by customers.

    “Already the app can be downloaded through Google Play or Apple Store.

    “The pilot scheme will start and be rolled out for Abuja customers in the next few weeks and it will thereafter be rolled out nationwide.,” he said.

    Oseni explained that the new Ogun forum office was the 31st office established across the country, adding that NERC planned to establish a minimum of one such office in each state of the country to enable electricity consumers to lodge their complaints to NERC.

    “The electricity sector is still fraught with a lot of challenges and some of them are beyond the control of the utility providers.

    “Some are systemic problems that require strong efforts and commitment on the parts of the policymakers, regulators and well-meaning Nigerians.

    “The commission wants to ensure that it performs its oversight function rooted in international best practices and without discrimination.

    “It is part of efforts to realise these aspirations that this forum office is being unveiled,” he said.

    “A five-member panel has been carefully selected from local communities in the state to adjudicate on any complaints brought to the forum.

    “The panel will consider each case based on already established rules and laws in tune with the Nigerian constitution and then deliver its ruling on the matter,” he said.

    He, however, explained that the first point of call for lodgment and resolution of complaints should be the Ibadan Electricity Distribution Company (IBEDC), which is the distribution company in charge of Ogun State.

    “Only when complaints are not resolved or satisfactorily attended to within two weeks are customers expected to escalate to the NERC forum office,” he said.

    The Chief Operating Officer of IBEDC, Mr. John Ayodele, in his address, noted that the development was a demonstration of NERC’s commitment to putting the customers first.

    Ayodele, represented by Deolu Ijose, Chief Commercial Officer, IBEDC, said the forum was in line with the firm’s goal of taking service delivery to higher heights through “customer-centric initiatives”.

    He encouraged IBEDC customers in Ogun to take advantage of various platforms created by the firm and the NERC to get their complaints resolved.

    “With over two million customers across our franchise of Ogun, Oyo, Osun, Kwara and parts of Ekiti, Kogi and Niger, some customer’ dissatisfaction are bound to happen.

    “The push back from the Service-Based Tariff (SBT), capping methodology, general economic situation and the unrealistic expectations from customers who still consider power as a social service are factors that constantly generate controversies.

    “Hence, the need for the NERC forum office which will serve as an unbiased arbiter,” he said.

    Ayodele noted that over 134,000 of the 159,000 complaints received across IBEDC’s franchise in 2021 were resolved.

    He expressed optimism that the forum office will mediate over knotty issues and also help to educate customers on their rights and obligations

  • Senate confirms Buhari’s nominees as Commissioners for NERC, NPC

    Senate confirms Buhari’s nominees as Commissioners for NERC, NPC

    Four nominees of President Muhammadu Buhari for National Commissioners of the Nigerian electricity regulatory commission (NERC) and the National Population Commission (NPC), has been confirmed by the Senate at plenary on Tuesday.

    This came following the consideration and adoption of a report on the screening of the nominees by the Senate Committee on Power.

    The report was presented by the Chairman, Sen. Gabriel Suswam (PDP-Benue).

    Nominees confirmed as National Commissioners of NERC include: Dr Yusuf O. Alli (North Central), Mr Chidi Ike (South-East), Mr Nathan Rogers Shatti (North -East) and Mr Dafe N Akpeneye (South-South).

    The Senate also at primary confirmed Buhari’s nomination of five persons for appointment as Commissioners for National Population Commission (NPC).

    Their confirmation followed consideration and adoption of the report of the Committee on National Identity and National Population on screening of the nominees.

    The report was presented by the Chairman of the Committee, Sen. Ya’u Sahabi (APC-Zamfara).

    Those confirmed as Commissioners for NPC are: Chief Benedict Ukpong Effiong (Akwa-Ibom), Mrs Gloria Fateya Izonfo (Bayelsa), Mr Kupuchi Patricia Ori Iyanya (Benue), Dr Haluru Bala (Kebbi) and Dr.Eyitayo Oyekunle Oyetunji (Oyo).

    Senate also at plenary passed for first reading, five bills which are: the National Centre for Cancer and Treatment Establishment Bill, 2022 sponsored by Sen. Yakubu Oseni (APC-Kogi).

    The Energy Commission Act Amendment Bill, 2022 by Sen. Barau Jibrin (APC-Kano), Federal Entrepreneur Centres Establishment Bill, 2022 by Sen. Oduah Stella PDP- (Anambra ).

    Others are the National Institute for Educational Planning and Administration Suleja Establishment Bill, 2022 by Sen. Musa Sani (APC- Niger), and the Federal Medical Centre Gwadabawa Sokoto State Establishment Bill, 2022 by Sen. Gobir Abdullahi.

  • Buhari writes Senate to confirm appointment of 4 NERC commissioners

    Buhari writes Senate to confirm appointment of 4 NERC commissioners

    …also sought confirmation of 4 NDIC Eds

    President Muhammadu Buhari, has written to the Senate to seek confirmation for the appointment of four commissioners for Nigeria Electricity Regulatory Commission (NERC).

    Aside from the NERC commissioners, the president also sought confirmation for the appointment of Executive Directors of the Nigerian Midstream and Downstream Petroleum Regulatory Authority and the Nigerian Deposit Insurance Corporation.

    President of the Senate, Ahmad Lawan, at the plenary on Wednesday, read the three letters from Buhari.

    Those nominated to be appointed as NERC commissioners are Dr. Yusuf Ali (North-Central), Engr. Chidi Ike (South-East), Mr. Nathan Shetty (North-East), and Mr. Dafe Apeneye (South-South) as commissioners of the NERC.

    The President also sought the confirmation of Francis Alabi Ogali; Dr. Mustapha Lawade; Monsuru Kulia; Bashiru Sadiq, and Dr. Zainab Gobir as executive directors of the Nigerian Midstream and Downstream Petroleum Regulatory Authority.

    Mrs. Emili Chidinma Osuji’s name was contained in a separate letter also sent to the Senate for confirmation as the Executive Director of the NDIC.

  • Three neighbouring countries owe Nigeria N770m for electricity supplied in Q2 2021 – NERC

    Three neighbouring countries owe Nigeria N770m for electricity supplied in Q2 2021 – NERC

    The Nigerian Electricity Regulatory Commission (NERC) has said that three neighbouring countries did not make any payment for the second quarter of 2021.

    In its recently released Second Quarter Report 2021, the NERC revealed that the countries (Togo, Benin Republic, and Niger) and some other special customers were issued a total bill of N770m by the Nigerian Bulk Electricity Trading company and the Market Operator of the Transmission Company of Nigeria.

    The report however stated that no payment was made, adding that it is hoped the outstanding will still be paid when things begin to look up for those economies, as the pandemic played a great role in the non-remittance experienced.

    “During the quarter under review, NBET and MO issued a total ₦0.77billion in respect of energy sold by NBET and services rendered by MO to the special (Ajaokuta Steel Co. Ltd and other bilateral customers) and international customers (Societe Nigerienne d’electricite – NIGELEC, Societe Beninoise d’Energie Electrique – SBEE and Compagnie Energie Electrique du Togo–CEET).

    “No payment was made by these customers during the quarter under review. It is hoped that as the economy of these customers improves post-covid 19 lockdown they will resume the settlement of their bills in full,” the report read in parts.

    The Commission further stated that it has through the applicable orders set a minimum remittance threshold (MRTs) for each Disco having adjusted for their tariff shortfall.

    Adding that the inadequacies recorded within the period show that DisCos need to improve on their performance as none of them met the minimum remittance threshold.

    “Whereas the Discos were expected to remit ₦130.66billion (62.99%) to NBET in line with the minimum remittance threshold order, they remitted only ₦ 91.31billion (44.02%) out of ₦207.43billion invoice from NBET.

    “Therefore, DisCos’ remittance level, regardless of the prevailing tariff shortfall, was still below the expected MRT.

    “Necessary mechanism must be used to nudge the Disco into compliance with the MRT order to avoid a relapse to days of zero remittance from some Discos,” the NERC stated.

    The commission further disclosed that during the second quarter of 2021, a total invoice of ₦259.70billion was issued to the eleven (11) DisCos for energy received from the Nigerian Bulk Electricity Trading Plc (“NBET”) and for service charge by MO, out of which a sum of ₦130.11billion was settled, representing remittance performance of 50.11%.

    This according to the NERC represents a 1.78 percentage point decrease from the final settlement rate recorded in the first quarter of 2021.

    Apart from Eko Disco, none of the other DisCos met their expected minimum remittance thresholds (“MRTs”) to NBET in the quarter under review.

    Overall, the total Disco remittance to NBET was 76% of the expected total for the quarter.

    As part of its inferences regarding the development, the NERC noted that one of the contributory factors to high ATC&C losses, and hence poor liquidity, is the non-settlement of energy bills by MDAs across the three tiers of government (i.e., Federal, State, and Local Government).

    In the commission’s opinion, an urgent resolution of the MDA debt challenge will improve the Disco liquidity and capacity to settle market invoices.

  • Tariff hike: Electricity consumer group to monitor October bills

    Tariff hike: Electricity consumer group to monitor October bills

    The All Electricity Consumers Protection Forum (AECPF) says it will monitor the bills of customers for the month of October to ensure that there is no increment by electricity Distribution Companies (DisCos).

    The group made this known in a letter to the Nigerian Electricity Regulatory Commission (NERC) on Monday in Lagos.

    The letter, dated Aug. 30, and signed by its National Coordinator, Mr Adeola Samuel-Ilori, said electricity consumer groups were vehemently against any form of increment in tariffs by the DisCos.

    Samuel-Ilori noted that the group would continue to maintain vigilance even if given assurances by NERC and the DisCos that there would be no tariff hike based on past experiences.

    “We are of the opinion that your organisation is not oblivious of the provision of the Electric Power Sector Reform Act, 2005 as it relates to increase in tariff process and steps to be taken.

    “Let us reiterate that any increase in tariff announced without following such process as mandated in Section 76(1) and 76 (2) (b) and (f) will be resisted by the consumers, ” he said.

    According to him, this may involve protests or legal action against NERC and the DisCos in a court of competent jurisdiction.

    He said the DisCos had not met the provision for the tariff increment especially in investment in infrastructure upgrade to improve quality of power supply to Nigerians.

  • New electricity tariff hike will kill Nigerians – Reps

    New electricity tariff hike will kill Nigerians – Reps

    The House of Representatives has criticised the planned increase of electricity tariff, urging the Nigerian Electricity Regulatory Commission (NERC) to rescind its decision.

    The call was sequel to a unanimous adoption of a motion by Representative Aniekan Umanah (PDP-Akwa Ibom) at plenary on Thursday.

    Moving the motion, Mr Umanah said that it was important to suspend the planned increase in view of the current economic situation in Nigeria.

    He said that NERC was established by the Electric Power Sector Act of 2005, with a mandate to license Distribution Companies (DISCOs).

    The rep said that the commission was to determine operating codes and standards, establish customer rights and obligations and set cost-reflective industry tariffs.

    Mr Umanah said that NERC, working with Distribution Companies, had increased electricity tariffs five times since 2015 saying that the latest being on January 1.

    According to him, in spite of the increase, Nigerians have not enjoyed significant improvement in power supply; instead they are daily grappling with epileptic services from the DISCOs.

    He said Nigerians had suffered unilateral exploitation in the name of estimated billing arising from non-metering of over 50 per cent of consumers.

    “Poor services by the DISCOs have impacted negatively on the socio-economic growth of the country as the International Monetary Fund (IMF) Report of 2020 on Nigeria indicated that the manufacturing sector lost over 200 billion dollars to inadequate power supply while a whopping 21billion dollars was said to have been spent by Nigerians on power generation sets within the period under review.

    “The Nigerian masses have gone through so much hardship in recent times arising from acts of terrorism, banditry, kidnappings, farmers and herdsmen’s crisis with its toll on agricultural activities, displacement from ancestral homes, loss of loved ones, starvation arising from inability to return to daily occupation and loss of personal properties running into several million of naira.

    “Governments all over the world are adopting measures to cushion the devastating effects of COVID–19 pandemic on their citizens by providing a wide range of palliatives to those who suffered general distortion in their social life.

    “NERC is tinkering with the idea of a further increase in electricity tariff after that of January 1, in a country where 2/3 of the 200 million population is grappling with the crippling effects of the pandemic.

    “The purchasing power of an average Nigerian has drastically reduced, any further hike in electricity tariff at this time will amount to overkill, lack of empathy and height of insensitivity,’’ he said.

    The house mandated its Committees on Power, Poverty Alleviation and Labour, Employment and Productivity to ensure compliance.

    In a related development, the house adopted a motion and mandated the House Committee on Power to investigate alleged transfer of debts incurred by old electricity consumers to new users by DISCOs.

    Moving a motion, Representative Shoyinka Olatunji said that there were constant complaints by electricity consumers on the poor services by DISCOs.

    He said that consumers have also alleged that DISCOs were in the habit of transferring outstanding debts of old customers to new users of residential buildings.

    The rep said that the companies which were responsible for the collection of payments for services rendered to consumers, allow unpaid bills to accumulate.

    “Concerned that if nothing is done to curb the act of transferring debts incurred by other consumers to new consumers, the latter will continue to bear the burden of paying for the electricity they did not consume,’’ he said.

    In his ruling, the Deputy Speaker of the house, Rep Ahmed Wase directed the committee to engage the DISCOs and NERC with a view to find a lasting solution.

    Wase also mandated the committee to report back within two weeks for further legislative actions.

  • NERC admits adjusting rates, denies increasing electricity tariff by 50%

    NERC admits adjusting rates, denies increasing electricity tariff by 50%

    NERC spokesman Micheal Faloseyi refuted the reported increment in a statement on Tuesday.“The commission hereby state unequivocally that no approval has been granted for 50 per cent tariff increase in the tariff order for Electricity Distribution Companies (DISCOs) which took effect from January 1, 2021,” Faloseyi said.

    “On the contrary, the tariff for customers on Service Bands D and E (customers being served less than an average of 12 hours of supply per day for a period of one month) remains frozen and subsidised in line with the policy direction of the Federal Government.

    “In compliance with the Electric Power Sector Reforms Acts (EPRSA) and the nation’s tariff methodology for biannual review, the rates for Service Bands A, B, C, D and E have been adjusted by N2.00 to N4.00 per kWhr to reflect the partial impact of inflation and movement in foreign exchange rates.”

    Faloseyi said that the commission remains committed to protecting electricity consumers from failure to deliver on committed service levels under the service-based tariff regime.

    NERC spokesman asked any customer that has been impacted by any rate increase beyond the above provision of the tariff order should report to the commission at customer.complaints@nerc.gov.ng.

  • Electricity tariff: We only made minor adjustments – NERC clarifies

    Electricity tariff: We only made minor adjustments – NERC clarifies

    The Nigerian Electricity Regulatory Commission (NERC) has clarified that it did not hike electricity tariff by over 50 per cent.

    Rather, the NERC clarified that the rates for service bands A, B, C, D and E were only adjusted by NGN2.00 to NGN4.00 per kWhr.

    NERC in a statement released by its spokesman, Micheal Faloseyi explained that the adjustment is to reflect the partial impact of inflation and movement in forex.

    The electricity regulatory agency also stated that customers on service bands D and E were not affected by the adjustment.

    The NERC statement reads: “The attention of the Commission has been drawn to publications in the print and electronic media misinforming electricity consumers that the Commission has approved a 50% increase in electricity tariffs.

    “The Commission hereby state unequivocally that NO approval has been granted for a 50% tariff increase in the Tariff Order for electricity distribution companies which took effect on January 1, 2021.

    “On the contrary, the tariff for customers on service bands D & E (customers being served less than an average of 12hrs of supply per day over a period of one month) remains frozen and subsidised in line with the policy direction of the FG.

    “In compliance with the provisions of the EPSR Act and the nation’s tariff methodology for biannual minor review, the rates for service bands A, B, C, D and E have been adjusted by NGN2.00 to NGN4.00 per kWhr to reflect the partial impact of inflation & movement in forex.

    “In the light of strong public interest on this matter, the media is hereby requested to retract their earlier publications misinforming electricity consumers nationwide about a purported 50% increase in electricity tariffs.

    “The Commission remains committed to protecting electricity consumers from failure to deliver on committed service levels under the service-based tariff regime.

    “Any customer that has been impacted by any rate increases beyond the above provision of the tariff Order should report to the Commission at customer.complaints@nerc.gov.ng.

  • BREAKING: FG again hikes electricity tariff by 50%

    BREAKING: FG again hikes electricity tariff by 50%

    The Nigerian Electricity Regulatory Commission (NERC) has approved an over 50% hike in electricity tariff effective January 1, 2021.

    This is contained in a revised Multi Year Tariff Order (MYTO) signed by the new Chairman of NERC, Engr. Sanusi Garba, on December 30, 2020.

    The new tariff hike regime is to be paid by customers of the 11 electricity Distribution Companies (DISCOs).

    This is coming just two months after the Commission forced implementation of much opposed hike on Nigerians in November 2020.

    According to the revised MYTO, the new tariff increase took effect on January 1, 2021, and supersedes the previous Order NERC/2028/2020.

    In the new Order NERC/225/2020, the commission said it considered certain factors to raise the tariff.

    The factors the commission said are 14.9% inflation rate rise in November 2020, foreign exchange of N379.4/$1 as of December 29, 2020, available generation capacity, US inflation rate of 1.22% and the Capital Expenditure (CAPEX) of the power firms.

    The revised Service Based Tariff (SBT) also saw an increase in the rates payable by all classes of electricity users unlike the one of November 2020, that exempted low power getters.

    This is effective till June 2021 while a Cost Reflective Tariff (CRT) expected to raise the new cost higher will be activated from June to December 2021, the NERC Order revealed.