Nigerians groan under poor electricity supply, the Nigerian Electricity Regulatory Commission, NERC, has approved over 50 per cent hike in electricity tariff effective January 1, 2021.
As Nigerians groan under poor electricity supply, the Nigerian Electricity Regulatory Commission, NERC, has approved over 50 per cent hike in electricity tariff effective January 1, 2021.
According to a revised Multi-Year Tariff Order, MYTO, signed by the new Chairman of NERC, Mr Sanusi Garba, on December 30, 2020, the new tariff increase which supersedes the previous Order NERC/2028/2020 is to paid by customers of the 11 electricity Distribution Companies, DISCOs.
In the new Order NERC/225/2020, the commission said it considered the 14.9 percent inflation rate rise in November 2020, foreign exchange of N379.4 per dollar as of December 29, 2020, available generation capacity, United States inflation rate of 1.22 percent and the Capital Expenditure, CAPEX, of the power firms to raise the tariff.
The revised Service-Based Tariff also saw an increase in the rates payable by all classes of electricity users unlike the one of November 2020, that exempted low power getters.
The NERC order said this is effective till June 2021, while a Cost Reflective Tariff expected to raise the new cost higher will be activated from June to December 2021.
It will be recalled that NERC earlier in December 2020, notified that it had begun a review for another tariff, which has been completed and had taken effect from January 1, 2021.
NERC had raised tariff for the DISCO last September, but that drew outrages from customers and the organised labour, prompting the Federal Government to suspend it to pave way for parties to dialogue. Subsequently, by November 1, 2020, the suspended tariff was implemented after some discounts were given for customers who get 12 hours and above power supply daily.