Saturday, October 16, 2021
Again, FG Increases Electricity Tarrif

The Federal Government through 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 is coming just two months after it finally implemented a much opposed
hike in November 2020.

According to a revised Multi Year Tariff Order (MYTO) signed by the new Chairman of NERC, Engr. Sanusi Garba, on December 30, 2020, and sighted on
Tuesday, the new tariff increase took effect on January 1, 2021, and
supersedes the previous Order NERC/2028/2020.

In the new Order NERC/225/2020, the commission 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.

The revised Service Based Tariff (SBT) also saw increase in the rates payable
by all classes of electricity users unlike the one of November 2020, that
exempted low power getters.

This is effective till June 2021 while a Cost Reflective Tariff (CRT) expected to
raise the new cost higher will be activated from June to December 2021, the
NERC Order revealed.

It had earlier been reported that in December, 2020, NERC notified that it had
begun a review for another tariff, which has been completed and had taken
effect from January 1, 2021.

NERC had raised tariff for the DisCos in September but that drew outrages
from customers and the organised labour, prompting the federal government to
suspend it while parties dialogued.

By November 1, 2020, the suspended tariff was implemented after some
discounts were given for customers who get 12 hours and above power supply
daily.

However, those with less than 12 hour supply did not get a tariff hike,
according to the NERC order of November 2020.

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