The Nigerian Electricity Regulatory Commission (NERC) has approved the increment of tariff rates of Distribution Companies (DisCos) in Nigeria.
According to NERC Chairman, Sanusi Garba, the new tariff took effect from February 2022. Part of the published document on NERC’s site reads:
“This regulatory instrument shall be cited as Multi-Year Tariff Order (MYTO-2022), which chairman, Sanusi Garba, and Vice-Chairman Musiliu Oseni signed on 29th December 2021.
“Consequently, following the approval of PHED’s PIP on 30th April, 2021, the Commission issued the MYTO-2021 Extraordinary Tariff Order effective from 1st July 2021 in consideration on PHED’s CAPEX proposals over a 5-year plan in line with the approved PIP.
“Accordingly, this MYTO-2022 order restates PHED’s approved 5-year CAPEX and relevant assumptions applied to forecast revenue requirements and applicable tariffs for the period 2021-2026 in line with MYTO Methodology and Regulations Procedure for Electricity Tariff Reviews in the Nigerian Electricity Supply Industry (NESI).
According to reports, the approved DisCos include: Kaduna Electricity Distribution Company (KEDC); Jos Electricity Distribution Company (JEDC); Port Harcourt Electricity Distribution Company (PHEDC); Ikeja Electricity Distribution Company (IKEDC) ; Kano Electricity Distribution Company (KEDCO) and Ibadan Electricity Distribution Company (IBEDC).
The decision to approve the new tariff rates comes after the commission’s announcement in March, that there would be a minor tariff review every six months to reflect current economic situation.
In spite of this, many Nigerians continue to grapple with power disruptions in their communities. The Nigerian national electricity grid, has constantly suffered collapse in the last nine years. In March, it collapsed twice, throwing many people into total darkness for days.