Electricity tariff will likely go up soon as the Nigerian Electricity Regulatory Commission (NERC) announced plans to conclude the Extraordinary Tariff Review process for the country’s 11 electricity distribution companies.
The review, which is a minor one, began in the first quarter of 2020 and has remained inconclusive.
This disclosure is contained in a notice which was issued by the Chairman of NERC on Monday, April 26, 2021, and seen on its website.
The Commission expressed its readiness to commence the processes for a minor review of the tariff in July, based on changes in inflation, foreign exchange, gas prices, and available generation capacity, among other factors.
NERC states that the reviews can also be carried out whenever industry parameters have changed from those used in the operating tariffs to such an extent that a review is urgently required to maintain the viability of the industry.
The commission is, however, soliciting comments from the general public and industry stakeholders on the proposed reviews.
NERC is mandated, under the provisions of the Electric Power Sector Reform Act (EPSRA) to review electricity tariffs in Nigeria every six months (minor) and five years (major).
