Barely two months after it implemented a much-opposed electricity hike in November 2020, the federal government has again announced new electricity tariff in the country.
It was gathered that the Nigerian Electricity Regulatory Commission, NERC has approved over 50 per cent hike in electricity tariff payable by customers of the eleven Distribution Companies, DisCos.
This was contained in a revised Multi-Year Tariff Order signed by the new Chairman of NERC, Engr. Sanusi Garba, on December 30, 2020.
Meanwhile, the new tariff increase took effect on January 1, 2021, and supersedes the previous Order NERC/2028/2020.
New Electricity Tariff
The NERC noted that the factors considered include the 14.9% inflation rate rise, foreign exchange of N379.4/$1, US inflation rate of 1.22% and the Capital Expenditure (CAPEX) of the power firms to raise the tariff.
However, the revised Service-Based Tariff (SBT) also saw an increase in the rates payable by all classes of electricity users unlike the one of November 2020, that exempted low power getters.
Everyevery.ng gathered that the NERC announced that a Cost Reflective Tariff (CRT) expected to raise the new cost higher will be activated from June to December 2021.
In September 2020, the NERC had raised tariff for the DisCos which resulted in outrages from customers and the organised labour, hence, prompting the federal government to suspend it (read more here).
You will recall that the commission had earlier issued a notification that it had begun a review for another tariff, which has been completed and had taken effect from January 1, 2021.