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Electricity Tariff In Nigeria May Rise As NERC Concludes Extraordinary Review

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The Nigerian Electricity Regulatory Commission (NERC) has announced it is concluding the Extraordinary Tariff Review process for the 11 Electricity Distribution Companies (DisCos).

The power sector regulator made the disclosure on Monday in a notice to the general public.

The notice said the review was pursuant to the provisions of the Electric Power Sector Reform Act (EPSRA).

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NERC explained that extraordinary tariff reviews are carried out in instances where industry parameters have changed from those used in the operating tariffs.

The commission said it would also commence the processes for the July 2021 Minor Review of the Multi-Year Tariff Order (MYTO-2020), which is done every six months.

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NERC confirmed the reviews consider changes in inflation, foreign exchange, gas prices and available generation capacity.

It would also consider Capital Expenditure (CAPEX) required to evacuate and distribute the said available generation capacity in accordance with the EPSRA and other extant industry rules.

The notice said the evaluation of the DisCos’ requests for review of the CAPEX proposed in their Performance Improvement Plans (PIPs) could not be concluded during the Minor Reviews undertaken in 2020.

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It added that Section 21 of the MYTO – 2020 Order provides for consideration of DisCos’ CAPEX application upon further scrutiny and evaluation of the investment proposals.

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