The conclusion of Extraordinary Tariff Review process for the 11 Electricity Distribution Companies (DisCos) in the country by the Nigerian Electricity Regulatory Commission (NERC) will gives high chance of yet another increment in Nigeria Electricity tariff
This follow the notice by the agency to address both general public and industry stakeholders which was made available on it’s website said the review was pursuant to the provisions of the Electric Power Sector Reform Act (EPSRA).
NERC further explain that the extraordinary tariff review is as a result of changes in inflation, foreign exchange, gas prices, available generation capacity and capital expenditure.
The commission said it would also commence the processes for the July 2021 Minor Review of the Multi-Year Tariff Order (MYTO-2020), which is done every six months.
The notice read as:
“The MYTO 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”).
“Accordingly, this notice is issued to inform the general public and industry stakeholders of the Commission’s intention to: Conclude the Extraordinary Tariff Review process for the eleven DisCos; Commence the processes for the July 2021 Minor Review of MYTO – 2020 to consider changes in inflation, foreign exchange, gas prices, available generation capacity, and CAPEX required to evacuate and distribute the said available generation capacity in accordance with EPSRA and other extant industry rules.
“This notice is hereby issued in compliance with the provisions of EPSRA, the Business Rules of the Commission and the Regulations on Procedures for Electricity Tariff Reviews in the Nigerian Electricity Supply Industry to solicit for comments from the general public on the proposed reviews.
“Stakeholders and the general public are invited to send their comments to the Commission within 21 days from the date of this publication.”
Meanwhile, The new increment is coming barely three months after the implementation of the controversial hike proposed last year which takes effect on January 5th 2021. In the 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…”
And just recent NTZ made a report that Nigeria has taken the lead of top countries in the world with highest number of citizen that lack access to electricity overtaken Democratic Republic of Congo. Click here to read more about this