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Electricity tariffs review looms

Fresh adjustment in the electricity tariffs for consumers in Nigeria is looming as the Nigerian Electricity Regulatory Commission (NERC) plans extraordinary tariff review process for the 11 Electricity Distribution Companies (DisCos).

 NERC, the regulator of the power sector, made this known via a notice to the general public and industry stakeholders posted on its website.

The review, the commission said, is pursuant to the provisions of the Electric Power Sector Reform Act (EPSRA).

According to NERC, extraordinary tariff reviews are carried out in instances where industry parameters have changed from those used in the operating tariffs to such an extent that a review is urgently required to maintain the viability of the industry.

 The parameters, including inflation rate and Naira to Dollar exchange rate, among others, have been on the increase, indicating that the review would be done upward.

  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.

 NERC said the reviews would put into consideration changes in inflation, foreign exchange, gas prices and available generation capacity. 

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

“Further to the above, the commission held series of public hearings and stakeholder consultations in the first quarter of 2020 on the Extraordinary Tariff Review Applications of the 11 DisCos to consider their respective five-year Performance Improvement Plans (PIPs).

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