The Nigerian Electricity Regulatory Commission (NERC) has given electricity distribution companies in the country approval to increase their tariff rates.
The companies include Port Harcourt Electricity Distribution Company (PHEDC), Jos Electricity Distribution Company (JEDC), Kano Electricity Distribution Company (KEDC), Kaduna Electricity Distribution Company (KEDC), Ikeja Electricity Distribution Company (IKEDC), and Ibadan Electricity Distribution Company (IBEDC).
The latest development was disclosed via a document titled, ‘This regulatory instrument shall be cited as Multi-Year Tariff Order (MYTO-2022) for Port Harcourt Electricity Distribution Company Plc (PHED)’.
NERC based the increase on the Performance Improvement Plans of the electricity distribution companies, and indices such as gas price, inflation, exchange rate, US inflation rate, and available generation capacity.
The commission noted that the indices with the potential impact on electricity rates were considered.
It added that the indices shall be reviewed every six months to update the tariffs with changes in the indices as applicable in line with the MYTO.
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The commission’s document with Order No: NERC/304/2021, which was signed on December 29, 2021, by the Chairman, Sanusi Garba, and Vice-Chairman, Musiliu Oseni, explained: “Consequently, following the approval of PHED’s PIP on 30th April, 2021, the Commission issued the MYTO-2021 Extraordinary Tariff Order effective from 1st July 2021 in consideration on PHED’s CAPEX proposals over a 5-year plan in line with the approved PIP.
“Accordingly, this MYTO-2022 order restates PHED’s approved 5-year CAPEX and relevant assumptions applied to forecast revenue requirements and applicable tariffs for the period 2021-2026 in line with MYTO Methodology and Regulations Procedure for Electricity Tariff Reviews in the Nigerian Electricity Supply Industry (NESI).”
The document showed that the PHED (A-Non MD) customers, who paid N56.16/kwh in January 2022, will now (February to December 2022) pay N60.67/kwh).
(B Non-MD) customers, who paid N56.64/kwh in January 2022, will now pay N59.64/kwh; while E- MD2 customers who paid N50.72/kwh in January 2022, will now (From February 2022) pay N54.22/kwh .
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