The Nigerian Electricity Regulatory Commission has announced plan for a tariff review for Nigeria’s 11 power distribution companies in July, signalling another hike in electricity tariffs.
This came to light via its notice of Minor and Extraordinary Review of Tariffs for Electricity Transmission and Distribution Companies.
NERC said the extraordinary tariff review necessary as a result of changes in inflation, foreign exchange, gas prices, available generation capacity and capital expenditure.
According to the commission, the Multi Year Tariff Order provided for minor reviews in every six months and major reviews in every five years.
NERC said extraordinary tariff reviews were 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.
It said it would also commence the processes for the July 2021 minor review of MYTO-2020 to consider changes in inflation, foreign exchange, gas prices, and available generation capacity.
NERC invited stakeholders and the general public to send their comments to the commission within 21 days from the date of the publication.
