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NERC approves tariff hike for six electricity distribution companies

The Nigerian Electricity Regulatory Commission (NERC), has given approval to six distribution companies (DisCos) to increase tariffs.

They include: Port Harcourt Electricity Distribution Company (PHEDC); Jos Electricity Distribution Company (JEDC); Kano Electricity Distribution Company (KEDC); Kaduna Electricity Distribution Company (KEDC); Ikeja Electricity Distribution Company (IKEDC); and Ibadan Electricity Distribution Company (IBEDC).

NERC cited the increase on the performance improvement plans of the DisCos and indices such as gas price, inflation, exchange rate, US inflation rate, and available generation capacity for the tariff increase.

The approval was contained in a document issued on December 29, 2021, and signed by Sanusi Garba, NERC chairman, and Musiliu Oseni, vice chairman, the new tariff took effect from February 2022, which was posted yesterday on the electricity regulator’s website.

It added that these indices shall be reviewed every six months to update the tariffs with changes in the indices as applicable in line with the multi-year tariff order (MYTO).

NERC cited the increase on the performance improvement plans of the DisCos and indices such as gas price, inflation, exchange rate, US inflation rate, and available generation capacity for the tariff increase.

The document was titled, “This regulatory instrument shall be cited as Multi-Year Tariff Order (MYTO-2022) for Port Harcourt Electricity Distribution Company Plc (PHED).”

It reads in part: “Consequently, following the approval of PHED’s PIP on 30th April 2021, the Commission issued the MYTO-2021 Extraordinary Tariff Order effective from 1st July 2021 in consideration on PHED’s CAPEX proposals over a 5-year plan in line with the approved PIP.

“Accordingly, this MYTO-2022 order restates PHED’s approved 5-year CAPEX and relevant assumptions applied to forecast revenue requirements and applicable tariffs for the period 2021-2026 in line with MYTO Methodology and Regulations Procedure for Electricity Tariff Reviews in the Nigerian Electricity Supply Industry (NESI).”

The new rates are as followed:

  • Non MD customers who paid N56.16/kWh in January 2022 will now (February to December 2022) pay N60.67/kWh).
  • Non-MD customers who paid N56.64/kWh in January 2022 will now pay N59.64/kWh.
  • E-MD2 customers who paid N50.72/kWh in January 2022 will now (From February 2022) pay N54.22/kWh.

This would be the third time electricity tariffs have been increased since 2016, even as only 45% of consumers have been metered across the country.

The increases come amid protests by consumers over the very poor power supply situation in Lagos and its environs amid high costs, particularly for those that are not metered.

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