Just In: Again, NERC Increases Electricity Tariff by Over 50%
The Nigerian Electricity Regulatory Commission, NERC, has approved over 50 per cent hike in electricity tariff payable by customers of the 11 Distribution Companies, DisCos.
This increment is appearing barely two months after the implementation of the proposed hike that attracted flak from the masses last year.
A Multi Year Tariff Order (MYTO) signed by the new Chairman of NERC, Sanusi Garba, on December 30, 2020, showed that the new tariff increase took effect on January 1, 2021.
According to the NERC order, “… 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…”
Dissimilar to the former order carried out in 2020 which freed low power consumers, the revised Service Based Tariff (SBT) also saw an increase in the rates payable by all classes of electricity users.
The new order will be in effect till June 2021 while a Cost Reflective Tariff (CRT) expected to raise the new cost higher which will be implemented from June to December 2021.
