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DISCOS Reluctant to Implement New Tariff Suspension

by James Ikenna……………..

………. Power average 32,799,114MWh in 2019…….

Despite the agreement between labour and the federal government to suspend the new electricity tariff there are instructions that some Distribution companies (Discos) are still charging the new Tariff.

After the agreement between labour and government the Nigerian Electricity Regulatory Commission, (NERC), on Tuesday issued directive that Discos should suspend the new tariff but further investigation showed that some Discos were reluctant to revert old tariff.
Some Discos had complained and gave the excuse that they have already computed the new tariff and it will take time to revert to old time. Meanwhile, the agreement between labour and the government is that this reversal will be for two weeks and consumers are wondering whether this reversal will be as effective as it suppose to be.

The two weeks is for labour and government to revisit and review the increase on the electricity tariff. Cuustomers, who had recharged their prepaid meter across the country are forced to pay the new cost reflective tariff issued in September 1, 2020.

The DISCOs, who confirmed this situation, said the directive was given on Tuesday and modalities for the implementation would need time.

They noted that such was not applicable to post paid meter customers who are been served bills for August which carried the old rate and not September.

A statement NERC noted that the suspension was issued on Tuesday September 29, stressing that it had officially suspended the electricity tariff hike.

The regulator issued Order No. NERC/209/2020 around 10.30 pm on Tuesday; with the title, “NERC Order on suspension of the Multi-Year Tariff Order 2020 for the electricity distribution licensees.”

The order was co-signed by the NERC Chairman, James Momoh, and the Commissioner, Legal, Licensing and Compliance, Dafe Akpeneye.

However, the Commission stated: “This order shall take effect from 28th September (Monday) 2020, and shall cease to have an effect on the 11th October 2020.”

Meanwhile, the Nigeria Bureau of Statistics (NBS) yesterday revealed that the power generation statistics for 2019 reflected that a total of 33,448,633 MWh of energy was generated by power stations.

The NBS report stated that GENCOs generated 19,692,683 MWh, IPP generated 7,798,253 MWh while the NIPP generated 5,957,697MWh. However, Egbin recorded the highest energy generation with 3,786,313MWh accounting for 11.32 percent while Alaoji NIPP recorded the lowest with 209,453MWh accounting for 0.63 percent of total energy generated in 2019.

Total Energy sent out by GENCOs in 2019 stood at 32,799,114MWh. GENCOs sent out 19,233,151 MWh, IPP GENCOs sent out 7,648,700 MWh while the NIPP sent out 5,917,262 MWh. Energy consumed by the Eleven DISCOs in 2019 stood at 28,026,503 MWh, Ikeja DISCO recorded the highest energy consumption with 4,087,971 MWh accounting for 14.95 percent while Yola DISCOo recorded the lowest with 1,122,534MWh accounting for 4 percent of total energy consumed in 2019. Cross Border Electricity Transactions showed that Benin and the Niger Republic were supplied a total of 1,278,344MWh and 1,048,807MWh of electricity respectively.

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