NERC Justifies Electricity Tariff Hike

The Nigerian Electricity Regulatory Commission (NERC) said the planned increase in tariff was done through consultation with Electricity Distribution Companies and stakeholders in the sector.
The Chairman of NERC, Prof. John Momoh, said this to newsmen, yesterday, in Abuja during the assumption of office of the new Minister of Power, Mr. Sale Mamman.
NERC on its website said it had determined and recognised the historical (2015-2018) tariff deficits pursuant to the objective of resolving the impairment of the financial records of DisCos arising as a consequence of the deficits.
“This order has taken into consideration the actual changes in relevant macroeconomic variables and available generation capacity in updating the operating MYTO 2015 Tariff Order for the period January 1, 2016, to December 31, 2018.
“In line with the provisions of the MYTO Methodology (Amended) projections were made for macroeconomic variables for the year 2019 and beyond based on best available information.
“The commission shall make necessary adjustments to reflect actual values at the time of the next minor review that will take effect on January 1, 2020.’’
Momoh said that the planned increase in tariff was through careful thinking, consultation with the DisCos and other stakeholders
“We have discussed fully what we are about to do and it is the right time to do it because we have meters out there that are going to reduce the estimated bill.
“So that everybody knows that you can control how much power you use and how much you pay which is part of the order.
“So, I think we are in the right direction.
“But mind you we also divide the payment into different classes; if you read it carefully and of course enforce it as a rule; if you have any questions send it in writing,‘’ he said.