TheCitizen - It's all about you
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials
No Result
View All Result
TheCitizen - It's all about you
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials
No Result
View All Result
TheCitizen - It's all about you
No Result
View All Result

Power firms now free to fix tariffs – NERC

The Citizen by The Citizen
April 9 2015
in Governance, Headlines, Uncategorized
A A
0

Electricity distribution companies can now set their own tariffs based on the cost of operating in their various locations, the Nigerian Electricity Regulatory Commission has said.

Although such will be subject to approval by the commission, NERC stated that the Discos would have to interface with their customers before presenting the tariffs to the regulator.

The Chairman, NERC, Dr. Sam Amadi, said this in Abuja on Wednesday at the end of the regular monthly meeting that the commission often holds with the power generation and distribution companies and the Transmission Company of Nigeria.

Amadi stated that the commission had in the past allowed the Discos to hold consultations with their customers on issues pertaining to tariffs, but noted that this time, it would be the duty of the companies to set the tariffs and not that of NERC.

The permission for the Discos to fix their tariffs will take effect from July when the Multi Year Tariff Order will take place.

According to the commission, the development will not lead to the jettisoning of the MYTO, but the tariff structure will be the framework for the idea.

“The MYTO remains as the framework for tariff. What has changed is that the Discos will be required to engage with their customers before presenting a tariff application for approval. The customers will not be in the shadows anymore. The Discos will have to engage with the customers,” Amadi said.

NERC, he said, would only approve what would be brought to it by the Discos as the new tariffs after it had done all necessary consultations.

Amadi said, “It is not that we have not been doing that before now; we have been having public hearings. But the difference here is that the reason for tariff setting for generating the cost will be squarely that of the Disco.

“This is for three benefits. One, they are the ones who know the actual cost of power tariff. Two, they know their customers’ profiles better and know how those costs can be better distributed. And thirdly, they interface more with their customers.”

He explained that the methodology would allow each Disco to adequately factor in all its expenses arising from the operational challenges faced, while distributing power to its customers in its area of operation.

The NERC boss noted that this was better than setting a tariff for a Disco without actually knowing the operational challenges the firm was facing.

Amadi said, “For example, take the Yola Disco that is having problems with insurgents. Thank God we have contained the insurgency. Assuming it was very devastating for them, they could come and say the cost of doing business has escalated. And they have to prove it if that is the case.

“Now, part of the requirement is that they will go and conduct consumer/stakeholder consultations with their consumer groups. They will propose to them the rate of increase that they are asking for. Of course, you don’t expect the consumers to clap for them when they increase tariffs.

“But the idea is that if there are consumer complaints, within that period they will create legitimacy first, and acceptability and affordability. And then, our job will be to attend such consultations; observe what is going on, and at the end of the day, the Discos will send to us a report showing that they have done consultations.”

Amadi said the initiative would ensure transparency in the sector and maintained that no increase in tariff would be made without being approved by NERC.

He said, “Now what does this do? It puts a restraint to undue or unreasonable tariff review. Consumers will now be enlightened and they will know how the Discos are serving them and will know what is warranting an additional cost implication.

“NERC also will have to approve the system. When they send us their proposal, we will still have to do public consultation. But the idea is that it first starts with the consumers before they propose to us. And if they have done the first process thoroughly, the second level becomes easier because some of the outrageous elements would have been probably discussed.

“But ultimately, it is NERC that approves the tariffs but what we are doing is that the onus is on them (Discos) to justify to us the increase and to also tell us how far they have carried the consumers along.” – Punch.

Previous Post

Jonathan visits Danjuma in Abuja

Next Post

Govt shuts land borders for polls

Related Posts

Tinubu, Shettima’s absence: I’m not Acting President, says Akpabio
Headlines

Tinubu, Shettima’s absence: I’m not Acting President, says Akpabio

September 23 2026
Tinubu orders probe into death of detained miners in Niger State
Headlines

Tinubu orders probe into death of detained miners in Niger State

September 19 2026
2027: Obi, Kwankwaso Movement unveils 59-member presidential campaign council
Headlines

2027: Obi, Kwankwaso Movement unveils 59-member presidential campaign council

September 17 2026
Nigeria moves health technology assessment from technical idea to national system
Governance

Nigeria moves health technology assessment from technical idea to national system

September 17 2026
NASS seeks states’ approval for State Police, LG autonomy, other reforms
Governance

NASS seeks states’ approval for State Police, LG autonomy, other reforms

September 16 2026
2027: Wike, APC governors clash over Rainbow Coalition
Headlines

2027: Wike, APC governors clash over Rainbow Coalition

September 16 2026
Next Post

Govt shuts land borders for polls

Search for Chibok girls continues, says FG

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

FROM THE GRASSROOTS

Minister defends King’s College concession, cites infrastructure decay

Minister defends King’s College concession, cites infrastructure decay

by The Editor
September 16 2026
0

...

Lagos demolishes shanties after four die in community clash

Lagos demolishes shanties after four die in community clash

by The Editor
August 30 2026
0

...

Kano, Sokoto, others spend N53.2bn on scholarships abroad

INEC fixes Sept 19 for Kano Assembly by-election

by The Editor
August 27 2026
0

...

Awujale: Ruling House sues Ogun, kingmakers

Awujale: Ruling House sues Ogun, kingmakers

by The Editor
August 25 2026
0

...

APPOINTMENTS

Enugu governor names Nollywood’s Eucharia Anunobi, Rachael Okonkwo aides

Enugu governor names Nollywood’s Eucharia Anunobi, Rachael Okonkwo aides

by The Editor
September 23 2026
0

...

Gov. Yahaya swears in 19 new Gombe permanent secretaries

Gov. Yahaya swears in 19 new Gombe permanent secretaries

by The Editor
September 11 2026
0

...

Niger State governor appoints six commissioners-designate, four aides

Niger State governor appoints six commissioners-designate, four aides

by The Editor
September 8 2026
0

...

Tinubu swears in Enitan as new Head of Service

Tinubu swears in Enitan as new Head of Service

by The Editor
August 28 2026
0

...

ODDITIES

Residents find lifeless body in Akwa Ibom gutter, police begin probe

New co-tenant absconds with neighbour’s children in Akwa Ibom

by The Editor
September 17 2026
0

Palliatives: Sokoto residents feared dead in stampede at Wammako’s residence

Police Inspector slumps, dies after fitness exercise

by The Editor
September 3 2026
0

How friend deceived me to sell my kidney, bought phones with payment — Victim

How friend deceived me to sell my kidney, bought phones with payment — Victim

by The Editor
August 30 2026
0

GLOBAL NEWS

Trump signs security deal with Greenland, Denmark at UN

Trump signs security deal with Greenland, Denmark at UN

by The Editor
September 23 2026
0

...

Trump bars CNN, MS NOW, Politico from White House

Trump bars CNN, MS NOW, Politico from White House

by The Editor
September 18 2026
0

...

2027 Hajj: Saudi Arabia rejects Nigeria’s request for additional slots

2027 Hajj: Saudi Arabia rejects Nigeria’s request for additional slots

by The Editor
September 17 2026
0

...

Canada flags Nigeria, 16 African countries as high-risk in new travel advisory

Canada raises study permit, visitor visa processing times for Nigerians

by The Editor
September 17 2026
0

...

Trump promises Americans $5,000 if Republicans win Congress

Trump races to confirm judges before midterm elections

by The Editor
September 16 2026
0

...

State of the States

I won’t be a godfather; Abia voters will pick my successor, says Gov. Otti

I won’t be a godfather; Abia voters will pick my successor, says Gov. Otti

by The Editor
September 17 2026
0

...

Fubara orders fresh LG elections in Rivers State

Fubara signs N1.84tt Rivers 2026 budget into law

by The Editor
September 3 2026
0

...

Lagos empowers 6,190 residents with free vocational, entrepreneurial skills

Lagos empowers 6,190 residents with free vocational, entrepreneurial skills

by The Editor
September 2 2026
0

...

Gov. Mutfwang convenes security council over Plateau attacks

Gov. Mutfwang convenes security council over Plateau attacks

by The Editor
September 2 2026
0

...

Plugin Install : Widget Tab Post needs JNews - View Counter to be installed
  • Trending
  • Comments
  • Latest
Rivers Chief Judge frees 14 prisoners

Rivers Chief Judge frees 14 prisoners

September 23 2026
Tinubu, Shettima’s absence: I’m not Acting President, says Akpabio

Tinubu, Shettima’s absence: I’m not Acting President, says Akpabio

September 23 2026
Trump signs security deal with Greenland, Denmark at UN

Trump signs security deal with Greenland, Denmark at UN

September 23 2026
Babachir Lawal joins NDC three months after ADC exit

Babachir Lawal joins NDC three months after ADC exit

September 23 2026

EDITORIAL REVIEW

2027: Voter registration figures must mirror turnout – Punch

2027: Voter registration figures must mirror turnout – Punch

by The Editor
September 17 2026
0

EFCC recoveries: The good, the bad and the ugly – Punch

EFCC recoveries: The good, the bad and the ugly – Punch

by The Editor
September 11 2026
0

Football’s house of failure – Punch

Football’s house of failure – Punch

by The Editor
September 8 2026
0

FAAC shares N2.09tr to FG, states, local councils as October revenue

FAAC bonanza: Nigeria’s fiscal paradox – Punch

by The Editor
September 3 2026
0

Interstate highways of agony, hollow excuses – Punch

Interstate highways of agony, hollow excuses – Punch

by The Editor
September 1 2026
0

Opinion

 Akpakomiza and other stories

by The Editor
September 1 2026
0

...

‘Fake’ Agency: Adeyemi insists DG appointment genuine

Fake agencies: Why Nigeria still needs Oronsaye report

by The Editor
August 25 2026
0

...

How Adeleke danced back from the dead

How Adeleke danced back from the dead

by The Editor
August 19 2026
0

...

Adeleke’s win and the cost of winning at all costs

Adeleke’s win and the cost of winning at all costs

by The Editor
August 18 2026
0

...

Plugin Install : Popular Post Widget need JNews - View Counter to be installed
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials

© 2026 TheCitizen Ng. All Rights Reserved.

No Result
View All Result
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials

© 2026 TheCitizen Ng. All Rights Reserved.