The Nigerian Electricity Regulatory Commission (NERC) has approved an over 50 per cent hike in electricity tariff effective 1 January 2021.
This is contained in a revised Multi-Year Tariff Order (MYTO) signed by the new Chairman of NERC, Engirnee Sanusi Garba, on 30 December 2020.
The new tariff hike regime is to be paid by customers of the 11 electricity Distribution Companies (DISCOs).
This is coming just two months after the Commission forced implementation of the much-opposed hike on Nigerians in November 2020.
According to the revised MYTO, the new tariff increase took effect on 1 January 2021 and supersedes the previous Order NERC/2028/2020.
In the new Order NERC/225/2020, the commission said it considered certain factors to raise the tariff.
The factors the commission said are 14.9 per cent inflation rate rise in November 2020, foreign exchange of N379.4/$1 as of 29 December 2020, available generation capacity, US inflation rate of 1.22 per cent, and the Capital Expenditure (CAPEX) of the power firms.
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, which 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.