The Nigerian Electricity Regulatory Commission (NERC) has increased electricity tariff with 50 per cent.
According to a reviewed Multi Year Tariff Order (MYTO) signed by Sunusi Garba,
NERC Chairman on December 30, 2020, the new tariff increase which took effect from.January 1, 2021.
In the new Order NERC/225/2020, the commission said it considered the 14.9 per cent inflation rate rise in November 2020, foreign exchange of N379.4/$1 as of December 29, 2020, available generation capacity, US inflation rate of 1.22 per cent and the Capital Expenditure (CAPEX) of the power firms to raise the tariff.
The revised Service Based Tariff (SBT) also saw an increase in the rates payable by all classes of electricity users unlike the one of November 2020, that exempted low power getters.
According to the Order, this is effective till June 2021 while a Cost Reflective Tariff (CRT) expected to raise the new cost higher will be activated from June to December 2021.
In December, 2020, the commission informed Nigerians it had commenced a review for another tariff, which had been completed and had taken effect from January 1, 2021.
NERC had raised the tariff for the DisCos in September which was condemned by Nigerians.
The Federal Government agreed to suspend it while negotiations with the organised labour continued.
On November 1, 2020, NERC implemented the tariff after some discounts were given for customers who get 12 hours and above power supply daily.
However, those with less than 12 hour supply did not get a tariff hike, according to the NERC order of November 2020.