Connect with us


Electricity Tariff In Nigeria May Rise As NERC Concludes Extraordinary Review



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).

READ  'If you know who killed my brother come forward', BBNaija's Khafi Khareem

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.

READ  Peace will soon return to Southern Kaduna – El-Rufai

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.

READ  Ukraine military plane crash death toll increases

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.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *