The Nigerian Electricity Regulatory Commission (NERC) on Tuesday said it has commenced the process of reviewing the financial model that would determine the electricity tariff payable by customers to distribution companies (DISCOs) in Nigeria for five years.
In a statement by its Head of Media Unit, Mrs. Vivian Mbonu, in Abuja, the regulatory commission said it would continue to use the Multi-Year Tariff Order (MYTO) framework to determine tariffs issued to customers by DISCOs, stressing that it would only review the financial model of the framework.
“Following recent inaccurate reports in the media, the NERC hereby reaffirms that there are no plans to dump the MYTO framework used in determining end-user tariffs based on revenue requirement of the electricity industry.
“As part of the periodic evaluation of software models utilised by the commission, NERC plans to review the MYTO financial model to ensure its integrity and consistency of the platform with approved tariff principles pursuant to the numerous updates undertaken since the inception of the methodology in 2008.
“This is an important initiative of the commission as we prepare to commence the review of performance improvement plans to be submitted by utilities for the tariff period 2019-2023,” the statement read.
It added that the process would ensure that the eventual tariff to be charged would be fair to stakeholders in the market.
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