The Nigerian Electricity Regulatory Commission (NERC) has approved requests by some Electricity Distribution Companies (DisCos) to increase their tariff rates, 9news Nigeria learnt.
The DisCos include: Port Harcourt Electricity Distribution Company (PHEDC); Jos Electricity Distribution Company (JEDC); Kano Electricity Distribution Company (KEDC); Kaduna Electricity Distribution Company (KEDC); Jos Electricity Distribution Company (JEDC); Ikeja Electricity Distribution Company (IKEDC) and Ibadan Electricity Distribution Company (IBEDC)
According to a report by The Nation, the new approval took effect from January 1, 2022 but the new rate is from February 2022.
According to the 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 DisCos 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 of on electricity rates were considered.
It added that these indices shall be reviewed every six months to update the tariffs with changes in the indices as applicable in line with the MYTO.
This was contained in the commission’s Order No: NERC/304/2021, which chairman, Sanusi Garba and Vice-Chairman Musiliu Oseni signed on 29th December 2021.
The document 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).”