While Nigerians are yet to absorb the recent increase in electricity tariff, then, the Nigerian Electricity Regulatory Commission (NERC) has enforced a new multi-year tariff order (MYTO) that will increase electricity bills by over 50% nationwide.
e-newsdesk confirms according to records that electricity tariff in Nigeria has been increased to almost 70% in less than 6 months.
A revised MYTO and minimum remittance threshold payable by distribution companies, signed by NERC Chairman Sanusi Garba, authorizes the 11 DisCos to increase tariffs by 50 percent, citing prevailing economic realities, particularly inflation and the exchange rate.
The document, dated Dec. 30, 2020, rescinded the previous order, NERC/2028/2020.
The unions and the federal government had been at odds following the increase in the pump price of premium gasoline and the increase in the electricity tariff.
Following a series of outcries and outright rejection by consumers citing poor power supply and the impact of Covid-19, the DisCos had last October embarked on the introduction of a service-reflective tariff (SRT) structure after receiving support from President Muhammadu Buhari.
In the new arrangement, dubbed NERC/225/2020, NERC’s decision is based on the current inflation rate of 14.9 percent and the exchange rate of US$379.4 per 1.
All classes of consumers, except those who enjoy only a few hours of electricity supply, would pay more for electricity by June this year.