Warning: getimagesize(https://media.energytimesonline.com/wp-content/uploads/2020/08/logo_n-removebg-preview-300x55.png): failed to open stream: HTTP request failed! HTTP/1.1 404 Not Found in /home/energytimes/public_html/wp-content/plugins/td-cloud-library/shortcodes/header/tdb_header_logo.php on line 792
Sunday, April 11, 2021
Home Midstream Gas/Power FG hikes electricity tariff by 120 per cent

FG hikes electricity tariff by 120 per cent

The Federal Government through the Nigerian Electricity Regulatory Commission (NERC), has approved an increase in electricity tariff by 120 per cent effective from January 1, 2021

In an order to the 11 electricity issued and signed by NERC Chairman, Engr. Sanusi Garba, on December 30, 2020, stated that the new order  supersedes  ORDER/NERC/2028/2020and shall  take effect from January 1, 2021 and  shall  cease to have effect on the issuance of a new Minor  Review   Order  or an Extraordinary   Tariff Review Order  by the Nigerian   Electricity   Regulatory  Commission (NERC).

According to a copy of the order sited by ENERGY TIMES, a consumer who pays N22 per kilowatt under Ibadan Electricity Distribution Company for instance, before now will pay N62 per kilowatt of power.

NERC said before arrived at the minor  review  of the revised   MYTO-2020   Order,  considered  the  impact  of  inflation    rates (Nigeria    and USA),   foreign  exchange   rate  (NGN/USD),   gas  prices,  available   generation  capacity and   material   variances   to  the  accompanying    CAPEX  and   OPEX  required   for   the evacuation  and distribution  of available  generation    capacity.

In line  with the MYTO Methodology,  the CBN official  exchange rates plus a premium of 1 % were used for the retroactive review of the year 2020. Accordingly, average NGN/USD  exchange rate (+ 1 %)  for the period  1 •1    January 2020 to 151h   December 2020  of N360.8  was used to review the year 2020 tariffs. The NAFEX closing  NGN/USD exchange  rate  (+ l %)   of  N397.44   as   at  29’h December 2020  was adopted to project NGN/USD exchange rate for 2021  and beyond.

Accordingly,    this Order  is  issued   to reflect the  impact  of changes   in the Minor   Review variables  as indicated  in section  7 of this Order  and  used relevant projections  based on best available  information  in the determination  of cost  reflective tariffs  (CRT)  and relevant tariff  shortfalls   for  the year  2021. In December, 2020, NERC notified that it had begun a review for another tariff, which has been completed and had taken effect from January 1, 2021.

NERC had raised tariff for the DisCos in September but that drew outrages from customers and the organised labour, prompting the federal government to suspend it while parties dialogued.

By November 1, 2020, the suspended tariff was implemented 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. They remained at N4per kilowatts of power.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -

Most Popular

ETI appoints Fashina as Group Executive, Operations & Technology

Ecobank Transnational Incorporated (ETI), parent company of the Ecobank Group has announced the appointment of Tomisin Fashina as its new Group Executive for Operations...

Shell pays $3.243b to Nigeria’s govt in 2020

Shell, a global leading oil and gas producer on Wednesday published its 2020 Sustainability Report, its Industry Association Climate Review and its annual Payments...

Eni Makes Big Oil Find Offshore Angola

Eni has made a new light oil discovery in Block 15/06, in Angola’s deep offshore. The well has been drilled on the Cuica exploration...

DPR revokes Addax’s oil mining licenses for non-performance

.Re award licenses  to Kaztec and Salvic Consortium The Director Department of Petroleum Resources (DPR), Engr. Sarki Auwalu, has said that DPR revoked three Oil...

Recent Comments