The Nigerian Electricity Regulatory Commission (NERC), has reportedly approved over 50 per cent hike in electricity tariff payable by customers of the 11 Distribution Companies (DisCos) in the country, Daily Trust reports.
This comes just two months after NERC implemented the much opposed increase in electricity tariffs in November 2020.
The newspaper reports that according to a revised Multi Year Tariff Order (MYTO) signed by the new NERC chairman, Sanusi Garba, on December 30, 2020, sighted by it on Tuesday, the new tariff increase took effect on January 1, 2021, and replaces the previous Order NERC/2028/2020.
It added that in the new Order NERC/225/2020, the commission said it considered the 14.9 per cent 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 per cent and the Capital Expenditure (CAPEX) of the power firms to raise the tariff.
The report further said the revised Service Based Tariff (SBT) also saw increase in the rates payable by all classes of electricity users, unlike the one of November 2020, that exempted low power consumers.
This 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.
The report noted that in December, 2020, NERC 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 DisCos in September, but it drew anger from customers and the organised labour, prompting the Federal Government to suspend it while both parties dialogued.
However, the suspended tariff was implemented by November 1, 2020, after some discounts were given to customers who get 12 hours and above power supply daily.
But those with less than 12 hour supply did not get a tariff hike, according to the NERC order of November 2020.
Discussion about this post