Nigerians to Pay More as Electricity tariffs May rise in July

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

0

Nigerians may have to brace up to pay for more for electricity from July this year as the Nigerian Electricity Regulatory Commission on Monday announced that another tariff review for Nigeria’s 11 power distribution companies would hold in July.

This disclosure was made 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 every five years.

READ ALSO: https://www.brandpowerng.com/businesses-in-nigeria-lose-29-billion-yearly-to-poor-electricity-says-world-bank/

The commission, however, stated that extraordinary tariff reviews were 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.

Source: The Punch

You might also like

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More