NERC Opposes Increment in Electricity Tariff

  • NERC states tariff reviews do not always result in tariff increases
  • NERC announces July 2022  for minor review of the MYTO 2022

The Nigerian Electricity Regulatory Commission (NERC) has disputed claims that it intends to increase electricity tariffs, stating that tariff reviews do not always result in tariff increases.

The electrical market regulator issued a statement titled “Notice of Compliance in Respect of the Biannual Review of the Revenue Requirements of Licenses.”

End-users may be decreased in some electricity tariff classes under the Multi-Year Tariff Order, MYTO 2022, when greater efficiency in operational parameters for individual licensees outweighed the effect of changes in macroeconomic factors, according to NERC.

The answer comes in reaction to recent charges that power distribution companies, or DisCos, were increasing bills.

The commission announced that it would begin the processes for the July 2022 minor review of the MYTO 2022, following the Electric Power Sector Reform Act, EPSRA. And other extant industry rules to consider changes in relevant macroeconomic indices, generation capacity, and CAPEX required for evacuation and distribution of available generation capacity following actual regulations.

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