TheCable

The Nigerian Electricity Regulatory Commission (NERC) says it intends to review the financial model used to determine the tariff payable by electricity consumers.

Last week, James Momoh, NERC chairman, was quoted to have said the commission, under his watch, will not adopt the multi-year tariff order (MYTO) software in a bid to determine whether consumers are being cheated.

In a statement on Tuesday, Vivian Mbonu, head of NERC media unit, said the commission will continue to use the MYTO as the framework for determining tariffs while it reviews the financial model.

“NERC hereby reaffirms that there are no plans to dump the MYTO framework used in determining end-user tariffs based on revenue requirement of the electricity industry,” the statement read.

“As part of the periodic evaluation of software models utilised by the commission, NERC plans to review the MYTO financial model to ensure its integrity and consistency of the platform with approved tariff principles pursuant to the numerous updates undertaken since the inception of the methodology in 2008.

“This is an important initiative of the commission as we prepare to commence the review of performance improvement plans to be submitted by utilities for the tariff period 2019- 2023.”

The commission said the holistic review of the MYTO model also included aligning the basic assumptions and parameters with the underlying principles of the tariff methodology and ascertaining the full workability of the macros and other formulae.