Electricity tariff set to rise in July as NERC reviews MYTO
The Nigerian Electricity Regulatory Commission (NERC) says it will introduce another tariff review for the 11 distribution companies (DisCos) in the country.
In a notice posted on its website on Monday, the NERC said the extraordinary tariff review is as a result of changes in inflation, foreign exchange, gas prices, available generation capacity and capital expenditure.
The commission stated that the review is expected to begin in July.
“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,” NERC said.
“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.”
In November 2020, DisCos began implementation of a service-based reflective tariff (SRT) structure nationwide after receiving approval from President Muhammadu Buhari.
A month after, the NERC approved an increase in electricity tariff across the country beginning from January 1 — with the exception of customers who are being served less than an average of 12 hours per day in a given month.
I think this is not the right time to increase the tariff. You guys should consider the masses as there is abject poverty in the country and remember when the hardship is too much, people will revolt against the government which leads to insecurity.
NERC is more of a conspirator than. A regulator. Until prepaid meter acquisition is liberalised and the draconian monopoly removed the power industry unlike it’s counterpart telecoms will fail.
This is a very good and valid points, NERC is protecting the discos more than the consumers and it’s very saddened! There’s no competition in electricity unlike in telecom where we have more than one telecom operators competing for a user.
Discos are arbitrary, they flout rules and regulations without any consequence. Consumers are left in the dark for hours days and even weeks yet they still distribute bills, force individual and community to buy transformer and even pay for its installation, arbitrary billing etc- IBEDC does very well.