We didn’t approve tariff hike in new order — NERC

Nigerian Electricity Regulatory Commission (NERC)
Nigerian Electricity Regulatory Commission (NERC)

The Nigerian Electricity Regulatory Commission (NERC) has said it did not approve for any increase in electricity tariff in its new Order released last Wednesday.

A statement from the General Manager, Public Affairs, Dr. Usman Abba-Arabi on Friday said the reviewed Multi Year Tariff Order (MYTO) which captures the minor tariff review from 2016 to 2018 was to reflect the variations in tariff created by macro economic indices like inflation, risen foreign exchange rate among others.

“The Commission therefore wish to notify the general public that no tariff increase has been approved by the Commission vide the Order,” it noted.

NERC however said it shall continue to undertake periodic reviews of electricity tariffs in accordance with prevailing tariff methodology and will make consultations before the final decision.

Daily Trust reports that although NERC in the Order for each of the 11 DisCos stated the end user cost reflective tariff, it only permitted the end user allowed tariff which shows a rise in tariff by about N10 averagely.

With this computation, NERC captured the various shortfalls of the DisCos in the period with some reaching N100 billion due to the changes in the macro indices.

However, it clarified now that there was approval for the DisCos to charge new tariff.

This paper further notes that by January 2020, NERC will roll out result of a major tariff expected to have hiked payment rates just as these minor review is a preparation towards that.

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