Nigerians to Suffer More, as FG Raises Electricity Tariff

In addition to all the difficulties that Nigerians are going through in recent times, the federal government may effect another tariff increase on September 1, 2021, based on details contained in a new tariff order issued by the Nigerian Electricity Regulatory Commission (NERC) to Electricity Distribution Companies (DisCos) and Electricity Generation Companies (GenCos), informing them of the approval to increase electricity tariffs.

This is as the Nigeria LNG Limited (NLNG) says it is not responsible for the supply shortfall of Liquefied Petroleum Gas ( LPG), also known as cooking gas, and the consequent price hike across the country.

The company made the clarification in a statement issued by its general manager, external relations and sustainable development, Mrs Eyono Fatayi-Williams on Monday in Lagos.

A letter written by Eko DisCo to its customers appeared to confirm the planned increase.

However, a second letter signed by its CEO, denied any tariff increase was communicated advising customers to “disregard any such reports” not issued by its management. The company also mentioned it will inform its customers of any tariff increase.

Sources, however, said DisCos’ decision to keep mum may be because they have to receive the go-ahead from the government to implement the tariffs. Since the botched tariff increase last year, the government adopted a policy of engaging stakeholders before tariff increases.

The website of the industry regulator, NERC, where tariff orders for all DisCos are published did not have any copy of the new tariff orders and neither did it make any formal announcement.

This will be the third tariff increase in about a year with the first covering the period from January to June 2021, the second, July to August 2021 and the final which will soon be announced, September to December 2021.

According to information contained in the tariff orders for customers in Lagos, they will see their tariffs increase by about N2 across board by September 1, 2021.

The tariff order reveals inflation rate, exchange rate, US Inflation rate, generation capacity and gas prices are major factors considered in increasing electricity tariffs.