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Electricity: NERC announces new tariff hike
#1

Electricity: NERC announces new tariff hike


on
 January 5, 2021
[Image: Nigerian-Electricity-Regulatory-Commission-NERC.jpg]


The Nigeria Electricity Regulation Commission (NERC) has announced a new electricity tariff hike of 50%.
The new tariff regime takes effect from the 1st of January and to be complied with by customers of the 11 electricity Distribution Companies.



The new tariff is contained in the revised Multi-Year Tariff Order (MYTO) signed by the new Chairman of NERC, Engr. Sanusi Garba dated 30th of December, 2020.



According to the NERC, the 14.9% 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% and the Capital Expenditure (CAPEX) of the power firms resulted in the new tariff.

It would be recalled that the last tariff hike by the government almost led to the shutdown of the country by the Nigerian Labour Congress and Trade Union Congress until a parley between the unions and a government resolved the impasse with some concessions on both sides.



The Committee headed by the Minister of State for Labour and Employment, Festus Keyamo promised among other things distribution of prepaid meters and others.
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