The Nigerian Electricity Regulatory Commission (NERC) will from July 1, 2022 review electricity tariff, about six months after carrying out a similar exercise.
NERC stated its intention in a memo marked: “Notice Of Compliance in Respect of the Biannual Review of the Revenue Requirements of Licensees,” the power sector regulator said, adding, that the adjustment will cover among others, changes in relevant macroeconomic indices.
However, it stated that it would not necessarily lead to tariff increase for consumers, noting that some end users may actually have their rates reviewed down if the data available indicated otherwise.
NERC stressed that pursuant to the provisions of the Electric Power Sector Reform Act (EPSRA), it adopted the Multi-Year Tariff Order (MYTO) methodology in setting out the basis and procedures for determination of licensees’ revenue requirements and review of electricity tariffs in Nigeria.
It explained that the methodology provides for minor reviews (every six months), major reviews (every five years), and extraordinary reviews in instances where industry parameters have changed significantly from those used in the operating tariffs.
This is said to be to such an extent that a review is required urgently to maintain the viability of the electricity industry.
The latest development came a few weeks after a groundswell of insinuations that NERC had hidden the February 1, 2022 increase in power tariffs from Nigerians in a bid to hoodwink consumers.
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