Specifically, two months after the implementation of a hike that was opposed by all, the Nigerian Electricity Regulatory Commission, NERC, citing the increasing inflation in the country and the state of the economy generally,, has again approved over 50 per cent hike in electricity tariff payable by customers of the 11 Distribution Companies, DisCos.The current tariff plan was approved in November after a series of consultations between the government, labour unions who opposed it.
According to a revised Multi-Year Tariff Order (MYTO) signed by the new Chairman of NERC, Engr. Sanusi Garba, on December 30, 2020,, the new tariff increase took effect on January 1, 2021, and supersedes the previous Order NERC/2028/2020.
In the new Order NERC/225/2020, the commission said it considered the 14.9 per cent 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 per cent and the Capital Expenditure (CAPEX) of the power firms to raise the tariff.
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, that 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 revealed.
It was reported that in December 2020, NERC notified that it had begun a review for another tariff, which has been completed and had taken effect from January 1, 2021.
NERC had raised tariff for the DisCos in September but that drew outrages from customers and the organised labour, prompting the federal government to suspend it while parties dialogued.
By November 1, 2020, the suspended tariff was implemented after some discounts were given for customers who get 12 hours and above power supply daily.
However, those with less than 12 hour supply did not get a tariff hike, according to the NERC order of November 2020.