The Nigerian Electricity Regulatory Commission (NERC) approved the new increase which is to take effect from January 1, 2021. The new tarrif hike regime is to be paid by customers of the 11 electricity Distribution Companies (DISCOs).
The Commission announced this in a revised Multi Year Tariff Order (MYTO) signed by its new Chairman, Engr. Sanusi Garba on December 30, 2020 and supersedes the previous Order NERC/2028/2020
the United States inflation rate of 1.22 per cent and the Capital Expenditure of the power firms before the tariff was raised.
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. 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.
Recall NERC earlier in December, 2020, notified that it had begun a review for another tariff, which has been completed and had taken effect from January 1, 2021