Nigerians should prepare for an electricity tariff increase in the coming months as the Nigerian Electricity Regulatory Commission (NERC) is set to begin another tariff review for 11 power distribution companies.
The Commission on Monday disclosed that the review would be done in July in a public notice on Minor and Extraordinary Review of Tariffs for Electricity Transmission and Distribution Companies.
The commission explained that the extraordinary tariff review had became necessary in view of changes in inflation, foreign exchange, gas prices, available generation capacity and capital expenditure.
The commission said it would also consider the capital expenditure required to evacuate and distribute the available generation capacity in accordance with power sector Act and other extant industry rules.
NERC said the Multi Year Tariff Order (MYTO) provided for minor reviews in every six months and major reviews in every five years.
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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.
The commission invited stakeholders and the general public to send their comments to the commission within 21 days from the date of the publication.
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