The Nigerian Electricity Regulatory Commission (NERC) has approved about 50% increase in electricity tariff with effect from January 1, 2021.
The hike was contained in a revised Multi-Year-Tariff Order (MYTO) signed by the new Chair of NERC, Engr Sanusi Garba.
He signed the MYTO on December 30, 2020.
Customers of the 11 electricity Distribution Companies (DISCOs) are to pay the new tariff hike.
The NERC had two months ago (November 2020) announced and given effect to a hike, despite opposition by Nigerians.
The new tarrif, according to the revised MYTO, took effect on January 1, 2021, and superseded the previous Order NERC/2028/2020.
In the new Order NERC/225/2020, the commission said it considered certain factors in raising the tariff.
According to the Commussion, the factors included 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.
The revised Service Based Tariff (SBT) also saw an increase in the rates payable by all classes of electricity users unlike the one of November 2020, which 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 disclosed.
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