KERC Pledges Fair, Cost-Reflective Tariffs

The Kogi State Electricity Regulatory Commission, KERC, on Thursday, June 25, 2026, held its Issue-Day Conference on the Kogi State Electricity Tariff Setting Process, with a pledge to deliver reliable, affordable power for all citizens.

The forum was convened to validate tariff assumptions, examine key cost drivers, review service obligations, evaluate investment requirements, consider consumer protection measures, and obtain stakeholder input before a final tariff determination.

Speaking in Lokoja, the Commissioner for Rural and Energy Development, Engineer Abdulmutalib Mohamed, commended KERC for building a viable electricity market while protecting consumer rights since inception.

He described the Multi-Year Tariff Order, MYTO, process as critical to balancing investor confidence with affordability and improved service delivery for Kogites. The Commissioner assured that the state government will support policies that guarantee reliable power and fair pricing across communities.

In his opening remarks, the Chairman/CEO of KERC, Engineer Ibrahim Sunday Abdulwaaris, said the Commission’s mandate is to protect consumers while ensuring the SubCo remains financially viable to attract investment. “Any Tariff we approve must be fair, cost-reflective, transparent, and based on verifiable data. That is the law and that is our commitment,” Engr. Abdulwaaris stated.

KERC Chairman/CEO explained that the tariff is not just a bill but “the contract between the service provider and the people of Kogi State,” because it determines investment in transformers, local meter supply by PEEMADI, industrial operations, and household affordability.

He clarified that the conference was not a decision-making day. KERC will review all comments received at the event and written submissions until July 9, 2026, before issuing the final Tariff Order.

“Our goal is one: reliable, affordable electricity for every Kogi citizen,” he added. The Chief Economic Adviser to the Kogi State Government, Hon. Aliyu Salami, urged KERC to position the state as a gateway for electricity investors.

Hon. Salami noted that the tariff-setting process will determine investor inflow and pledged to collaborate with the Commission to attract more capital into the sector.

The Commissioner for Market, Competition, and Rate, Engr. Abdussalam Yusuf, PhD, explained that tariff setting is the regulatory process for determining customer charges.

Quoting the adage, “Money is a coward; it will not go where it cannot return,” he said the tariff must guarantee investor returns while keeping power affordable. Engr. Yusuf disclosed that KERC will eliminate the current Band A, B, and C classifications.

Under the proposed structure, all consumers will receive the same hours of supply and pay the same tariff rate. Tariffs for public schools and hospitals will, however, be set slightly lower to protect low-income users.

He also tasked KEDL to ensure 90% metering of customers by 2030 to curb electricity theft and reduce Aggregate Technical, Commercial and Collection, ATC&C, losses from 42% to 25% or less.

Engr. Michael Meliga, Commissioner for Engineering, Performance, and Monitoring, said quality electricity is not cheap but can be affordable with the right tariff. Engr. Meliga charged KEDL to reduce fatalities to zero and equip staff with materials to trace and rectify faults promptly. “We will do our part and KEDL should also do their part to ensure a sustainable electricity market that is safe, affordable and reliable,” he said.

The Group Managing Director of Abuja Electricity Distribution Company, AEDC, Engineer Chijoke Okwuokenye, joined virtually. He expressed satisfaction with sector progress, thanked KERC for its leadership, and pledged closer collaboration on tariff and service delivery.

Engr. Okwuokenye highlighted Nigeria’s infrastructure gap and urged that Gross Replacement Value, generation costs, and investment gestation periods be factored into the tariff model and KPIs.

Similarly, in his presentation to open deliberations, the General Manager, Market, Competition and Rate, Mallam Isah Suleiman, outlined the comprehensive procedural steps leading to the Issue-Day Conference. He reaffirmed the Commission’s commitment to a tariff regime that is transparent, fair, and cost-reflective.

Contributors included Mr. Desmond Eboh, Acting MD, KEDL; Mr. Iliyasu Zakari, Chairman, Light Up Committee; representatives from Federal University Lokoja, Prince Abubakar University Anyigba, College of Health Sciences and Technology Idah, Kogi State House of Assembly, Immigration Office Lokoja, Ajaokuta Constituency, NDLEA, and other virtual participants.