By Fola James
Barely one month after the Nigerian Electricity Regulatory Commission, NERC said it was reviewing the nation’s electricity tariff, the regulator has increased tariff payable by all electricity customers in the country by over 50 per cent.
The Sanusi Garba-led NERC has directed the 11 Distribution Companies, Discos to take effect the increase effective from January 1, 2020.
Customers are however agitated that the new Multi Year Tariff Order (MYTO) tariff signed by NERC chairman on December 30, 2020, came barely two months after the implementation of the controversial hike proposed last year.
The new order supersedes, the NERC said the previous Order NERC/2028/2020
In the new order, NERC said it considered the “…14.9% inflation rate rise in November 2020, foreign exchange of N379.4/$1 as of December 29, 2020, available generation capacity, US inflation rate of 1.22% and the Capital Expenditure (CAPEX) of the power firms to raise the tariff…”
Unlike the earstwhile order implemented in 2020, which exempted low power consumers, the revised Service Based Tariff (SBT) also saw increase in the rates payable by all classes of electricity users.
The NERC said the order is effective till June 2021 while a Cost Reflective Tariff (CRT) expected to raise the new cost higher will be activated from June to December 2021.
