The Nigerian Electricity Regulatory Commission, NERC, has increased electricity tariff by over 50 percent.
The increase, unknown to many Nigerians, is with effect from January 1, 2021.
The new hike in tariff is to be paid by customers of the 11 electricity Distribution Companies, DISCOs.
This is coming barely two months after the Commission implemented a hike that was seriously opposed by Nigerians last year November.
According to a revised Multi Year Tariff Order (MYTO) signed by the new Chairman of NERC, Engr. Sanusi Garba, on December 30, 2020 the new tariff increase supersedes the previous NERC Order of 2018/2020.
The commission is to consider in the new order NERC/225/2020, the 14.9% inflation rate rise in November 2020, foreign exchange of N379.4/$1 as of December 29, 2020, available generation capacity, US inflation rate of 1.22% and the Capital Expenditure (CAPEX) of the power firms to raise the tariff.
There is also revised Service Based Tariff (SBT) which also saw increase in the rates payable by all classes of electricity users unlike the one of November 2020, that singled out low power getters.
According to the NERC Order, this is effective till June 2021 while a Cost Reflective Tariff (CRT) which will raise the new cost higher. This will be activated from June to December 2021.
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