Nigerians may soon be asked to pay more for electricity as the Nigerian Electricity Regulatory Commission (NERC) is set to conclude the “Extraordinary Tariff Review process” for the country’s 11 electricity distribution companies.
NERC announced its readiness to conclude the review in a notice on its website on Monday.
The commission stated that it will undertake a minor review of the tariff in July, based on “changes in inflation, foreign exchange, gas prices, and available generation capacity” among other factors.
The NERC is however soliciting comments “from the general public on the proposed reviews”.
“The MYTO (Multi-Year Tariff Order) provides for Minor Reviews (every 6 Months), Major Reviews (every 5 years), and Extraordinary Tariff Reviews in instances where industry parameters have changed from those used in the operating tariffs to such an extent that a review is 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 eleven (11) electricity distribution companies (“DisCos”) to consider their respective 5-year Performance Improvement Plans (‘PIPs’).
“However, the evaluation of the DisCos’ requests for review of the Capital Expenditure (‘CAPEX’) proposed in their PIPs could not be concluded for the consideration of the Commission during the Minor Reviews undertaken in 2020. Specifically, Section 21 of the MYTO – 2020 Order provides for consideration of DisCos’ CAPEX application upon further scrutiny and evaluation of the investment proposals,” the notice partly read.
Reviews, according to NERC, can also be carried out whenever “industry parameters have changed from those used in the operating tariffs to such an extent that a review is urgently required to maintain the viability of the industry”.
An increase in the electricity tariff was earlier implemented in the year 2020 despite agitation from organised labour.