The Federal Government will fund a tariff shortfall of N 104 .5 bn that will be recorded by electricity distribution companies from September to December 2020 , according to the Nigerian Electricity Regulatory Commission .
The Discos had early this month announced what they called “ new service reflective tariff , ” which took effect from September 1 , 2020 , with the tariffs being charged residential consumers receiving a minimum of 12 hours of power supply rising by over 70 per cent .
Tariff shortfall is the difference between the Discos ’ revenue requirements and what they are allowed to recover from their customers by the regulator .
According to a NERC document , Ibadan Electricity Distribution Company has the highest tariff shortfall of N15 . 67 bn , followed by Benin Disco , with a shortfall of N12 . 27 bn .
Jos, Port Harcourt , Abuja and Enugu have tariff shortfalls of N11 . 52 bn , N10 . 98 bn , N10 . 33 bn , and N8 . 59 bn respectively .
Eko, Ikeja , Kaduna , Kano and Yola have tariff shortfalls of N8 . 15 bn , N 7 . 64 bn , N7 .50 bn and N6 .47 bn respectively .