Expect Rise in Electricity Tariffs as NERC Plans Another Review

Nigerian Electricity Regulatory Commission - NERC
The Nigerian Electricity Regulatory Commission on Monday announced that another tariff review for Nigeria’s 11 power distribution companies would hold in July.

In its notice of Minor and Extraordinary Review of Tariffs for Electricity Transmission and Distribution Companies, NERC disclosed that the development might lead to a rise in the tariffs payable by electricity users.

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The commission explained that the extraordinary tariff review was as a result of changes in inflation, foreign exchange, gas prices, available generation capacity and capital expenditure.

It stated that 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.

The commission further stated that it would also commence the processes for the July 2021 minor review of MYTO-2020 to consider changes in inflation, foreign exchange, gas prices, 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.