Increase in electricity tariff approved by NERC

The Nigerian Electricity regulatory Commission has approved a rise in electricity tariff by the 11 Electricity Distribution firms (DisCos) within the country.

The directive on the new tariff regime for various DisCos and also the class of customers was revealed on the NERC website on Saturday.

The directive was signed by the Commission’s Chairman, Prof. James Momoh, and Secretary, Mr. Dafe Akpedeye.

The new directive, in line with NERC, superceded the sooner one issued on the matter, and “the takes result from january one.

The Commission noted that the order had taken into thought, different actual changes in relevant macroeconomic variables and obtainable generation capacity as of Oct 31, 2019.

It aforementioned the order was in line with updating the Multi-Year Tariff Order (MYTO) operating -2015 Tariff Order for 2019 in line with the provisions of the amended MYTO Methodology.

NERC said: “Projections are created for the variables for the year 2020 and on the far side based on the most effective obtainable info.

“The Commission, however, based mostly the changes within the tariff, on the relevant knowledge obtained from the central bank of Federal Republic of Nigeria and National Bureau of Statistics like average monthly inflation rate of 11.3 % and an exchange rate of N309.97.”

According to the publication, the capital of Nigeria Electricity Distribution Company residential customers R3 who are antecedently paying N27.20 per unit are to currently pay N47.09.

NERC aforementioned the purchasers are currently to pay N19.89 additional per unit representing a 236.75 % increase.

“The industrial customers C3 that paid N27.20 per unit in 2015, once the tariff was last adjusted and enforced are currently to pay N47.09 in 2020,” it added.

The Commission aforementioned for the Ikeja Electricity Distribution Company’s customers, the R3 class customers that were formerly paying N26.50 per unit are to currently pay N36.92 per unit.

The customers are, therefore, to pay further N10.02 per unit, representing a 368.49 % increase.

“The industrial customers C3 that paid N24.63 per unit in 2015 are to currently pay N38.14 per unit.

“The customers are to pay further N13.51 per unit representing 282.30 percent.

“The industrial customers of the IKEDC D3 that paid N25.82 per unit are currently to pay N35.85 per unit.

“The distinction is currently the extra 10.03 per unit, representing a rise of 357.42 percent.”

NERC aforementioned Enugu Electricity Distribution Company residential (R3) customers that were paying N27.11 per unit in 2015 are to currently pay N48.12 per unit.

The customers are to pay an extra N21.01 per unit, that translates to 229.03 percent.

The Commission directed that “all DisCos are needed to settle their market invoices fully as adjusted and netted off by the applicable tariff shortfall.”

Post a comment