The Nigerian Electricity Regulatory Commission (NERC) has approved an increase in electricity tariff by the 11 Electricity Distribution Companies (DisCos) in the country.
The directive on the new tariff regime for different DisCos was signed by the Commission’s Chairman, Prof. James Momoh, and Secretary, Mr. Dafe Akpedeye.
The new directive which is to take effect from January 1, 2020 supersedes the earlier one issued according to NERC.
The Commission noted that the order given had taken into consideration other changes in relevant macroeconomic variables and available generation capacity as of October 31, 2019.
Further reports stated that the order was in line with updating the Multi-Year Tariff Order (MYTO) operating 2015 Tariff Order for 2019 according to the provisions of the amended MYTO Methodology.
NERC stated: “Projections are made for the variables of the year 2020 and beyond based on the best available information.
“The Commission, however, based the adjustments in the tariff on the relevant data obtained from the Central Bank of Nigeria (CBN) and National Bureau of Statistics (NBS) such as average monthly inflation rate of 11.3 percent and an exchange rate of N309.97.”
The Abuja Electricity Distribution Company (AEDC) residential customers R3 who are previously paying N27.20 per unit are now to pay N47.09.
NERC said the customers are now to pay N19.89 more per unit representing a 236.75 percent increase.
“The commercial customers C3 that paid N27.20 per unit in 2015, when the tariff was last adjusted and implemented are now to pay N47.09 in 2020,” they added.
The Commission said for the Ikeja Electricity Distribution Company’s (IKEDC), the R3 category customers that were formerly paying N26.50 per unit are now to pay N36.92 per unit.
The customers are, therefore, to pay additional N10.02 per unit, representing a 368.49 percent increase.
NERC further stated: “The commercial customers C3 that paid N24.63 per unit in 2015 are now to pay N38.14 per unit.
“The customers are to pay additional N13.51 per unit representing 282.30 percent.
“The industrial customers of the IKEDC D3 that paid N25.82 per unit are now to pay N35.85 per unit.
“The difference is now the additional 10.03 per unit, representing an increase of 357.42 percent.”
The Enugu Electricity Distribution Company (EEDC) residential R3 customers that were paying N27.11 per unit in 2015 are to now pay N48.12 per unit.
The customers are to pay an additional N21.01 per unit, which translates to 229.03 percent.
The Commission directed that: “All DisCos are required to settle their market invoices in full as adjusted and netted off by the applicable tariff shortfall.”