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NERC denies approving electricity tariff increase

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The Nigerian Electricity Regulatory Commission (NERC) has debunked claims that it approved a new electricity tariff in its new order released last Wednesday.

A statement on Friday by the General Manager, Public Affairs, Usman Abba-Arabi, said the reviewed Multi Year Tariff Order (MYTO) which captures the minor tariff review from 2016 to 2018 was to reflect the variations in tariff created by macroeconomic indices like inflation, rise in foreign exchange rate, among others.

The commission, however, stated that it would continue to undertake periodic review of electricity tariff in accordance with the prevailing tariff methodology.

NERC said: “We wish to provide guidance that the minor review implemented by the Commission was a retrospective adjustment of the tariff regime released in 2015 to account for changes in macroeconomic indices for the years 2016, 2017 and 2018 thus providing certainty about revenue shortfall that may have arisen due to the differential between tariffs approved by the regulator and actual end-user tariffs.

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“The principal objectives of the review are clearly articulated in section 6 (a – f) of the Order which may be downloaded from the Commission’s website.

“The Commission therefore wishes to notify the general public that no tariff increase has been approved by the Commission vide the Order.

“However, the Commission in the discharge of its statutory responsibilities enshrined under the EPSR Act, shall continue to undertake periodic reviews of electricity tariffs in accordance with prevailing tariff methodology. In all instances of such reviews and rule making, the Commission shall widely consult stakeholders and final decision shall take due regard of all contributions.”

Ripples Nigeria

We are an online newspaper, very passionate about Nigerian politics, business and their leaders. We dig deeper, without borders and without fears.
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Ripples Nigeria

We are an online newspaper, very passionate about Nigerian politics, business and their leaders. We dig deeper, without borders and without fears.
www.ripplesnigeria.com

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