Again, NERC set to increase electricity tariff

There are strong indications of possible hike in electricity bills as the Nigerian Electricity Regulatory Commission (NERC), said it is concluding the Extraordinary Tariff Review process for the 11 Electricity Distribution Companies (DISCOs).

This is likely to be implemented in July 2021.

The Commission made the announcement in a document titled: ‘Notice of Minor and Extraordinary Review of Tariffs for Electricity, Transmission and Distribution Companies’ obtained by Blueprint Newspapers.

The commission said it had held series of public hearings and stakeholders’ consultative forums in the first quarter of 2020 following applications filed by the DisCos asking that it to consider their respective 5-year performance Improvement Plans, PIPS.

It explained that the processes for the July 2021 minor review of MYTO – 2020 would consider changes in inflation, foreign exchange, gas prices, and available generation capacity.

It would also put into consideration the CAPEX required to evacuate and distribute the said available generation capacity in accordance with the Electric Power Sector Reform Act, EPSRA, and other industry rules, which could lead to an increase in electricity tariffs.

The Multi-Year Tariff Order, 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.

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