18th May, 2022
The Nigerian Electricity Regulatory Commission (NERC) said it has not approved a hike in electricity tariffs as reviews do not automatically translate into increase in cost for consumers.
NERC made this known in a statement titled ‘Notice of Compliance in Respect of the Biannual Review of the Revenue Requirements of Licenses’ published on Tuesday.
The electricity regulator said where the impact of improved efficiency in operating parameters for individual licensees exceeded the impact of changes in macroeconomic parameters, the end-users might be reduced as exhibited in some tariff classes under the Multi-Year Tariff Order, MYTO 2022.
The clarification came following backlashes that greeted recent reports of an increase in tariffs by the electricity distribution companies, DisCos.
NERC notified that in compliance with the Electric Power Sector Reform Act, EPSRA, and other extant industry rules, it would commence the processes for the July 2022 minor review of the MYTO 2022.
This, it said, is to consider changes in relevant macroeconomic indices, generation capacity and CAPEX required for evacuation and distribution of the available generation capacity in compliance with extant rules.