New Electricity Tariff Takes Effect Today – NERC

According to the Nigerian Electricity Commission (NERC) under the Multi-Year Tariff Order (MYTO), electricity consumers in the country will today commence payment on increased tariff. Also, there are inbuilt consumer protection mechanisms and incentives for improved service delivery by the Discos and fair return on investment in the new tariff order.

It was also stated in the new tariff that residential customer category (R2) in the Federal Capital Territory (FCT), Niger, Nasarawa and Kogi states, which fall under the Abuja Electricity Distribution Company (AEDC) franchise, who previously paid N14 per kilowatt/hour, will now pay N23.60 per kilowatt/ hour. An increase of N10 and N8 also applies to residents in Eko and Ikeja electricity distribution. With customers in Kaduna and Benin paying an increase of N11,05 and N9.26 respectively.

However, the minister of power, works and housing, Babatunde Fashola, stated that the new MYTO is aimed at correcting the whole system in the entire value chain of the power sector. He also said that the new tariff would galvanise the sector and boost investment which would enhance development in the country.

The acting head of the Commission, Dr. Anthony Akah said, “The Commission, in implementing this cost reflective tariff, will effectively monitor and enforce all service delivery agreements in the new tariff order, it also has a robust mechanism to ensure that electricity distribution companies fully meter their consumers and eliminate ‘crazy’ billing within one year.”