A 50 percent electricity tariff hike has been announced by the Nigerian Electricity Regulatory Commission (NERC).
According to NERC, the electricity hike takes affects all the customers of the 11 electricity Distribution Companies (DISCOs) operating in Nigeria.
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.
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.
The revised Service Based Tariff (SBT) also saw increase in the rates payable by all classes of electricity users unlike the one of November 2020, that exempted low power getters. READ ALSO: Nigerians disagree with FG on claim of reducing data price by 50% This is effective till June 2021 while a Cost Reflective Tariff (CRT) expected to raise the new cost higher will be activated from June to December 2021, the NERC Order revealed.
NERC had raised tariff for the DISCOs in September 2020 but that drew outrages from customers and the organised labour, prompting the Federal Government to suspend it to pave ways for parties to dialogue. Subsequently, by November 1, 2020, the suspended tariff was implemented after some discounts were given for customers who get 12 hours and above power supply daily.