ON Tuesday, 5th of January, 2021, the media was awash with a purported 50 percent increase in electricity tariff by the Nigerian Electricity Regulatory Commission (NERC).

Although the regulatory body issued a statement later to counter the report, it, however, explained that the said increase was just an adjustment rate for service bands A, B, C, D and E “by NGN2.00 to NGN4.00 per kWhr.”

This, according to the NERC, was to “reflect the partial impact of inflation & movement in forex.”

The federal government, through the minister for power, Saleh Mamman, had also directed the NERC to inform all the Electricity Distribution Companies (DisCOs) to revert to tariffs that were applicable in Dec. 2020 pending when the ongoing dialogue between labour unions and committees reached a logical conclusion.

NERC is an independent body of the federal government that is charged with authority for the regulation of the electric power industry in Nigeria.

One of the primary functions of the commission, as contained in Section 32 (d) of the Electric Power Sector Reform (EPSR) Act, 2005, is to ensure that the prices charged by licensees are fair to customers and sufficient to allow the licensees to finance their activities and to allow for reasonable earnings for efficient operation.
In pursuant to the authority given under Section 76 of the EPSR Act 2005, the commission established a methodology for regulating electricity prices called the Multi-Year Tariff Order (MYTO). The MYTO provides a 15-year tariff path for the Nigerian electricity industry with limited minor reviews each year in the light of changes in a limited number of parameters (such as inflation and gas prices) and major reviews every five years, when all of the inputs are reviewed with stakeholders.

The MYTO 1, introduced in 2008, was applied from 2008 to 2012. Subsequently, following a major review of the methodology in June 2012, MTYO 2.0 was issued and it was to remain effective from 2012 to 2017. Following a minor review in December 2015, NERC issued a new MYTO called the MYTO 2.1 that was to take effect from January 2015 to 2018. In 2015, NERC revised and amended the MYTO 2.1 by removing the collection loss component of the electricity, resulting in the amended version of MYTO 2.1. The uproar created by the removal of the collection loss factor resulted in NERC reinstating the collection loss, translating into MYTO 2015, which was meant to cover the period from 2015-2024.

READ MORE: https://www.icirnigeria.org/inside-nerc-electricity-tariff-regime/

If u know,as a nigerian..stayed with light,used light,slept with light in ur area for straight 1 month..uninterupted.

say aye!