The minor tariff review is an annual evaluation of the Multi-Year Tariff Order (MYTO) which determines the amount charged for electricity consumption. This review was carried out last year that resulted in an increase in electricity tariffs.
According to the minister of power, Engr. Sale Mamman, Nigerians should look forward to an increase in power supply efficiency and no significant increase in electricity tariff.
How true is this and what should customers expect?
NERC approvals accompanied the statement made by the minister of power with the performance improvement plans (PIP) by the country’s distribution companies (DisCos).
Below is a breakdown of the PIPs and what electricity consumers should expect from their respective DisCos:
| DisCo | ATC/C losses | Meter installations | Average hours of Supply |
| AEDC | 45% – 19% | 698,606 by 2024 | 17.98 |
| BEDC | 52.90% – 21.36% | 879,000 by 2026 | 12 |
| EKEDC | 26% – 20% | 204,000 by 2024 | 19.5 |
| IBEDC | 46% – 19% | 100% by 2024 | 15 |
| IKEDC | 25% – 8.8% | 21 | |
| KAEDC | 58% – 25% | 508,000 by 2026 | 20 |
| KEDCO | 49.31% – 17.21% | 21 | |
| JEDC | 61% – 23.1% | 16.7 | |
| PHED | 52.82% – 25.18% | 369,171 by 2024 | 13 |
| YEDC | 66% – 37.45% | 22 |
From the table above, DisCos have promised to reduce their technical, commercial, and collective losses (ATC & C), which is the difference in the amount of electricity received by a distribution company from a transmission company and the amount of electricity it receives as revenue from its customers plus any adjusted collection losses (learn more). This means that the amount of electricity received by a distribution company from the transmission line and the revenue gotten from customers would increase.
Furthermore, they have promised to achieve 100 per cent metering by 2026, bringing an end to estimated billing on customers. Also, the average number of hours of electricity supplied to customers would increase.
All these improvements are to begin on the 1st of July 2021 up until the next major review in 2026.