play_arrow

keyboard_arrow_right

skip_previous play_arrow skip_next
00:00 00:00
playlist_play chevron_left
volume_up
chevron_left
  • cover play_arrow

    Music 24/7 - Feel the vibe
    Online Radio

  • cover play_arrow

    Talk Shows - Stay Updated
    Online Radio

  • cover play_arrow

    Pillars and Plants - Gospel
    Online Radio

  • cover play_arrow

    Audio Stories - A new movie experience
    Online Radio

  • cover play_arrow

    Welcome to the Leading Lifestyle Internet Radio
    Online Radio

  • Home
  • keyboard_arrow_right Broadcasts
  • keyboard_arrow_right News
  • keyboard_arrow_right NERC approves over 50% hike in electricity tariff from January 1.

Broadcasts

NERC approves over 50% hike in electricity tariff from January 1.

Etha Ugoh January 5, 2021 25


Background
share close

The Nigerian government has approved over 50 per cent hike in electricity tariff payable by customers of the 11 Distribution Companies across the country. This directive was issued and signed by NERC Chairman, Sanusi Garba on December 31, 2020 to take effect from January 1.

In November 2020, the electricity distribution companies (DisCos) began implementation of a service-based reflective tariff (SRT) structure nationwide after receiving approval from President Muhammadu Buhari. The commission stated that the new tariff will be enforced until the issuance of another minor review order or an extraordinary tariff review order by the commission.

The Nigerian Electricity Regulatory Commission (NERC) explained that some of the indices considered for the upward review include Nigeria’s inflation rate, exchange rate, US rate of inflation, available generation capacity, gas price, MDA losses and capex adjustment. “This order supersedes ORDER/NERC/ 202B/2020 and shall take effect from January 1, 2021 and 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.

In addition, the commission said that “The actual average monthly inflation rate of 13.1% for the period January to November 2020 was used for review of the year 2020 tariffs, while, the November 2020 inflation rate of 14.9% as obtained from the NBS was adopted to project Nigerian inflation rates for the year 2021 and beyond.

Tagged as: , .

Rate it
Previous post
Post comments (0)

Leave a reply

Your email address will not be published. Required fields are marked *