Electricity tariffs may rise in July, NERC plans review

The Nigerian Electricity Regulatory Commission on Monday announced that another tariff review for Nigeria’s 11 power distribution companies would hold in July.

It disclosed this in its notice of Minor and Extraordinary Review of Tariffs for Electricity Transmission and Distribution Companies, a development that might lead to a rise in the tariffs payable by electricity users.

The commission explained that the extraordinary tariff review was as a result of changes in inflation, foreign exchange, gas prices, available generation capacity and capital expenditure.

It said the Multi Year Tariff Order provided for minor reviews in every six months and major reviews in every five years.

The commission, however, stated that extraordinary tariff reviews where done in instances where industry parameters had changed from those used in the operating tariffs to such an extent that a review was urgently required to maintain the viability of the industry.

It 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 11 electricity distribution companies to consider their respective five-year Performance Improvement Plans.”

It stated that based on the above, the notice was issued to inform the general public and industry stakeholders of the commission’s intention to conclude the extraordinary tariff review process for the Discos.

It said it would also commence the processes for the July 2021 minor review of MYTO-2020 to consider changes in inflation, foreign exchange, gas prices, available generation capacity.

The commission said it would also consider the capital expenditure required to evacuate and distribute the said available generation capacity in accordance with power sector Act and other extant industry rules.

It invited stakeholders and the general public to send their comments to the commission within 21 days from the date of the publication.

-Punch

About Don Saint

PR Guru / Author / Promoter / Controversial Writer / Hip Hop Artiste / Actor / Human Rights Activist. The First Nigerian Hip Hop Artiste to obtain a Masters Degree (M.A) in Arts ( Religion & Human Relations). The author of one of the most controversial books in Nigeria; "Emancipation from Masturbation". With over 12 Movies and 3 Musical albums since 2003. Former Events Manager at Silverbird’s Rhythm Fm Awka Station till 2010. For more info. Call : 08033239298.

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