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NERC To Consider Changes In Inflation, Exchange Rate & Gas Prices In Review - Politics - Nairaland

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NERC To Begin Another Electricity Tariff Review / Estimated Billing: NERC To Sanction EKEDC, 6 Others / NERC To Begin Mass Metering On May 1 (2) (3) (4)

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NERC To Consider Changes In Inflation, Exchange Rate & Gas Prices In Review by postbox: 2:19am On May 04
In the just concluded week, the Nigerian Electricity Regulatory Commission (NERC) indicated its readiness to conclude the Extraordinary Tariff Review process for the 11 Distribution companies (DisCos) and commence the processes for the July 2021 Minor Review of Multi-Year Tariff Order (MYTO) – 2020, in its recently released notice tagged “Notice of Minor and Extraordinary Review of Tariffs for Electricity Transmission and Distribution Companies.

According to the electricity regulatory body, actors to be considered in the review process include changes in inflation, foreign exchange, gas prices, available generation capacity, and capital expenditure (CAPEX) required to evacuate and distribute the available generation capacity.

The proposed electricity tariff review is in consonance with the MYTO methodology in setting out the basis and procedures for reviewing electricity tariff in the country which was adopted by NERC and backed by the provisions of the Electric Power Sector Reform Act (“EPSRA”).

Accordingly, the MYTO of 2015 provides for Minor Reviews every 6 months, Major Reviews every 5 years – which was due in 2020, and Extraordinary Tariff Reviews in instances where industry parameters have changed from those used in operating tariffs to such an extent that a review is urgently required to maintain the viability of the industry.

Meanwhile, NERC in its second-quarter 2020 industry report, noted that the capacity utilization rate of generated power has been consistently challenged by issues relating to gas supply shortages, as well as transmission and distribution network bottlenecks despite the increase in total electric energy generated.

According to the report, electric energy generated rose by 1.40% quarter on quarter (q-o-q) to 8,734,927MWh in Q2 2020, printing a peak daily generation of 5,316MW as the number of plants generation units increased to 73 from the daily average of 66 units in Q1 2020.

Also, the Commission noted that the financial viability and commercial performance of the industry have also been challenging as the total billing to and collection from electricity customers by all the eleven (11) DisCos stood at N164.07 billion and N121.61 billion respectively in Q2 2020.

Hence, DisCos’ billing efficiency declined to 68.38% in Q2 2020 from 78.38% in Q1 2020; however, their collection efficiency increased to 74.12% in Q2 2020 from 61.18% in Q1 2020.

During the quarter under review, a total invoice of N222.51 billion was issued to the 11 DisCos for energy received from the Nigerian Bulk Electricity Trading Plc (NBET), out of which N62.41 billion was settled, representing a remittance performance of 28.05%.
The Commission noted that the liquidity challenge was partly due to the non-implementation of cost-reflective tariffs, high technical and commercial losses exacerbated by energy theft as well as consumers’ apathy to payment under the widely prevailing practice of estimated billing.

This is in addition to the non-settlement of energy bills by the Ministries, Departments and Agencies of the three tiers of government (Federal, State and Local Governments). Hence, in order to partly resolve the issue of liquidity, NERC secured a-year deferral of new import levy to allow for speedy rollout of meters under the framework of the Meter Access Provider (MAP) regulations.

Barring any opposition from labour, we expect electric energy tariffs to be reviewed upward as a result of increases in the aforementioned parameters. This is more so as the industry has been struggling with operators’ inability

to recover their costs amid unfavorable selling prices, and relatively low collection efficiency rate due to estimated billing. Nevertheless, we feel that the massive roll-out plan of prepaid meters and further capital investment in transmission infrastructure would kick-start the much-desired recovery in the sector.
https://brandspurng.com/2021/05/03/nerc-to-consider-changes-in-inflation-exchange-rate-gas-prices-as-it-reviews-tariff/

1 Like

Re: NERC To Consider Changes In Inflation, Exchange Rate & Gas Prices In Review by MANNABBQGRILLS: 5:26am On May 04
In everything, we want no increment .
Anything to move our darling nation forward and make life easier for the masses is what we are after.

God bless Nigeria

5 Likes 5 Shares

Re: NERC To Consider Changes In Inflation, Exchange Rate & Gas Prices In Review by felsunseg(m): 5:27am On May 04
na una sabi. a country that can still not guarantee 24hrs electricity a day even if it's once in a week.

29 Likes 3 Shares

Re: NERC To Consider Changes In Inflation, Exchange Rate & Gas Prices In Review by Lalami3232(m): 5:27am On May 04
Na just to dey write figures upandan na dem sabi, no change in sight. For those of una wey get chance to leave this con3, make una leave am oooo cus some of us don book ticket with Edo airline grin

22 Likes 1 Share

Re: NERC To Consider Changes In Inflation, Exchange Rate & Gas Prices In Review by VirginSearcher(m): 5:27am On May 04
See that blind, empty, unintelligent Buhari supporter up there writing rubbish

79 Likes 2 Shares

Re: NERC To Consider Changes In Inflation, Exchange Rate & Gas Prices In Review by bigdammyj: 5:27am On May 04
Noted
Re: NERC To Consider Changes In Inflation, Exchange Rate & Gas Prices In Review by snoopanddre(m): 5:27am On May 04
F
Re: NERC To Consider Changes In Inflation, Exchange Rate & Gas Prices In Review by Jsucre(m): 5:27am On May 04
As in reduction in tariff
Re: NERC To Consider Changes In Inflation, Exchange Rate & Gas Prices In Review by Akwamkpuruamu: 5:27am On May 04
Another increase awaiting. Buhari you too much. We are still paying more for darkness

38 Likes 3 Shares

Re: NERC To Consider Changes In Inflation, Exchange Rate & Gas Prices In Review by Akwamkpuruamu: 5:28am On May 04
MANNABBQGRILLS:
Anything to move our darling nation forward is what we are after.

God bless Nigeria

Yes ọ. Buhari is a blessing to Nigeria. At least the nepa bills of zonebs are cheaper than that of the wailers. Ask Simplyleo and helinues

46 Likes 4 Shares

Re: NERC To Consider Changes In Inflation, Exchange Rate & Gas Prices In Review by Akwamkpuruamu: 5:29am On May 04
Jsucre:
As in reduction in tariff

Has there been anything that have reduced in price since Buhari came on board

26 Likes 1 Share

Re: NERC To Consider Changes In Inflation, Exchange Rate & Gas Prices In Review by BabaO2: 5:30am On May 04
Current tariff not affordable

7 Likes

Re: NERC To Consider Changes In Inflation, Exchange Rate & Gas Prices In Review by crownfierce: 5:31am On May 04
They have never ever reviewed the price downward, kontinue

7 Likes

Re: NERC To Consider Changes In Inflation, Exchange Rate & Gas Prices In Review by BruncleZuma: 5:31am On May 04
grin grin grin grin
Re: NERC To Consider Changes In Inflation, Exchange Rate & Gas Prices In Review by iceberylin(m): 5:35am On May 04
Africans need to stop sending raw material out to Europe and start production.
Re: NERC To Consider Changes In Inflation, Exchange Rate & Gas Prices In Review by palacealuminium: 5:35am On May 04
Hmmmm....guess this is the only directive that'll be effected with the speed of light. Tariff increase has been on in a subtle ways since last year. What happens to the directive on Prepaid Meter to all Nigerians. That'll solve a lot of the problems we're facing. If they the Discos know the people can only pay for what they use, definitely, they'll improve their output. Estimated billing is just milking a lot of people...... Get A Free Quotes For Your, Aluminium Systems, Suspended Ceilings, Glass Systems (windows, Doors, Shower Stalls, Etc.) WhatsApp/Call us below +2348033301246 +2348026308585

1 Like

Re: NERC To Consider Changes In Inflation, Exchange Rate & Gas Prices In Review by Mophor: 5:36am On May 04
grin grin grin
Re: NERC To Consider Changes In Inflation, Exchange Rate & Gas Prices In Review by mkoabiola: 5:36am On May 04
D lifeless vegetable in aso rock is less concern.

1 Like

Re: NERC To Consider Changes In Inflation, Exchange Rate & Gas Prices In Review by Bondinus(m): 5:45am On May 04
Am sure bubu will be shocked the day people rise up to these guys tariff. Still can't believe it has gotten to the part of power supply being more expensive than normal house rent.

15 Likes 1 Share

Re: NERC To Consider Changes In Inflation, Exchange Rate & Gas Prices In Review by ShenTeh(m): 5:45am On May 04
Another electricity consumption price hike is coming!

See as dem code the title of the news.

Shey dem swear for this demonic government ni?

6 Likes 1 Share

Re: NERC To Consider Changes In Inflation, Exchange Rate & Gas Prices In Review by Lanre4uonly(m): 5:46am On May 04
Ok. Fingers crossed.
Re: NERC To Consider Changes In Inflation, Exchange Rate & Gas Prices In Review by merits(m): 5:49am On May 04
grin roll out meters, for how long is it going to take to roll out meter? useless organization,failed country.

1 Like 1 Share

Re: NERC To Consider Changes In Inflation, Exchange Rate & Gas Prices In Review by sisisioge: 5:49am On May 04
Wow! They didnt mention that the last review was at a 100% increase to the final user even though distribution to him didnt increase by a 100%. This happened less than a year ago fa shocked shocked shocked


God o....Nigeria needs intervention! So when someone that earns 50k pays above 10k to Electricity disco, how much will remain to buy food, pay school fees, rent, medicals, transport, etc? Things have really gone south in this Buhari administration. It was never this bad!

4 Likes

Re: NERC To Consider Changes In Inflation, Exchange Rate & Gas Prices In Review by DubaiLandLord1: 5:50am On May 04
Shey this people dey use us play or what

Where are the prepaid meters?

This shouldn't be taken lightly by Nigerians, we must all stand up and make a brutal protest... If this country will burn, let it burn.

2 Likes

Re: NERC To Consider Changes In Inflation, Exchange Rate & Gas Prices In Review by nautybride: 5:53am On May 04
We hope they won't change mouth again.
Re: NERC To Consider Changes In Inflation, Exchange Rate & Gas Prices In Review by Minjim: 5:54am On May 04
These people are always saying there must be a minor or extra ordinary review intermittently but there are conditions for all these reviews

Power transmission must increase. But we have never been able to transmit more than 6, 000 kilowatt

More than half of consumers are not metered.

The regulators have been compromised to continue to approve all the increase
Re: NERC To Consider Changes In Inflation, Exchange Rate & Gas Prices In Review by ecomalchemist(m): 5:54am On May 04
High electricity tarriffs yet we don't get to enjoy what we pay for.

Who does that ?
Re: NERC To Consider Changes In Inflation, Exchange Rate & Gas Prices In Review by ceaser: 5:56am On May 04
These 1diots did not even mull a single word about distribution of prepaid meters in all the nonsense they wrote up there.

Well, when there was no inflation, people were already unleashing their angers on them. Now that everything is tough on Nigerians, be ready to be accosted by "unknown attackers" in every home you take your 5tup1d estimated bills to.

I've been on 100% alternative energy for six years now. I'm free from the encumbrances of PHCN but I can't bear to see the cheating of Nigerians by these inepts.

Makawhizzy:
Naija is just a funny place. More than 100% price hike last year and I currently spend a range of 50k per month o prepaid cards because my area was placed under those that have electricity for 18 hours plus yet na scam be that duration. How is N56/unit reasonable for a single phase customer? This government na fraud

You should consider riding solar. Now that you have prepaid meter, it will be easier for you to have alternative energy installed for your home. You can start little and alternate between solar and PHCN, thereby saving yourself more bucks spent on epileptic PHCN. With time you can increase your own capacity of production until such a time that you will totally jettison PhCN or use it for only heavy works such as ironing clothes.

I'm 100% solar, powering all moderate home gadgets you can think of. I still like to connect to the national grid but not until I'm able to lay my hands on a prepaid meter. I have been chasing BEDC for prepaid meter for 3 years now without getting anywhere with it. The woman in charge of BEDC - that former first bank MD - is touted to be the devil behind non-issuance of meters to customers. A woman fah!

And someone will be singing all over NL that "the future is female"

2 Likes

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