Despite epileptic power supply, Buhari government to hike electricity tariffs again

The Nigerian Electricity Regulatory Commission (NERC) says another tariff review for Nigeria’s 11 power distribution companies would hold in July.

It disclosed this in its notice of Minor and Extraordinary Review of Tariffs for Electricity Transmission and Distribution Companies.

The development could lead to a rise in the tariffs payable by electricity users even in the face of poor power supply.

The commission explained that the extraordinary tariff review was as a result of changes in inflation, foreign exchange, gas prices, available generation capacity and capital expenditure.

It said the Multi Year Tariff Order provided for minor reviews in every six months and major reviews in every five years.

The commission, however, stated that extraordinary tariff reviews where done in instances where industry parameters had changed from those used in the operating tariffs to such an extent that a review was urgently required to maintain the viability of the industry.

“Further to the above, the commission held series of public hearings and stakeholder consultations in the first quarter of 2020 on the Extraordinary Tariff Review Applications of the 11 electricity distribution companies to consider their respective five-year Performance Improvement Plans,” the NERC said on Monday.

It stated that based on the above, the notice was issued to inform the general public and industry stakeholders of the commission’s intention to conclude the extraordinary tariff review process for the Discos.

It said it would also commence the processes for the July 2021 minor review of MYTO-2020 to consider changes in inflation, foreign exchange, gas prices, available generation capacity.

The commission said it would also consider the capital expenditure required to evacuate and distribute the said available generation capacity in accordance with power sector Act and other extant industry rules.

It invited stakeholders and the general public to send their comments to the commission within 21 days from the date of the publication.

Via
Punch

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