By Ishaya Ibrahim, News Editor
Controversy on Tuesday trailed the reported 50 percent electricity tariff hike by the Nigerian Electricity Regulatory Commission (NERC), which took effect from January 1, 2021.
TheNiche had reported earlier today that according to the Multi Year Tariff Order (MYTO) signed by chairman of NERC, Engr. Sanusi Garba, the new tariff increase took effect from January 1, 2021, and supersedes the previous Order NERC/2028/2020.
NERC predicated its action on inflation.
“In the new Order NERC/225/2020, the commission said it considered 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.”
But the management of NERC later issued a statement saying there was no 50 per cent increase in electricity tariff.
This was made known by NERC’s Head of Public Affairs, Mr. Michael Faloseyi, in a statement in Abuja.
He said: “The commission hereby states unequivocally that no approval has been granted for 50 per cent tariff increase in the tariff order for Electricity Distribution Companies (DISCOs) which took effect from January 1, 2021.
“On the contrary, the tariff for customers on Service Bands D and E (customers being served less than an average of 12 hours of supply per day for a period of one month) remains frozen and subsidised in line with the policy direction of the Federal Government.”
But the statement is contradictory because it also admitted that there is, indeed, an increase.
“In compliance with the Electric Power Sector Reforms Acts (EPRSA) and the nation’s tariff methodology for biannual review, the rates for Service Bands A, B, C, D and E have been adjusted by N2.00 to N4.00 per kWhr to reflect the partial impact of inflation and movement in foreign exchange rates,” he said.
Faloseyi said that the commission remains committed to protecting electricity consumers from failure to deliver on committed service levels under the service-based tariff regime.
According to him, any customer that has been impacted by any rate increase beyond the above provision of the tariff order should report to the commission at customer.complaints@nerc.gov.ng.
But agitated Nigerians insist that this is one tariff hike, too many.