Proposed Electricity Tariff Review Not A Major Hike
Minister of Power, Sale Mamman
Minister of Power, Sale Mamman has stated that there would be no major hike in electricity tariff.
This is coming following the Nigerian Electricity Regulatory Commission (NERC) plan to introduce another tariff review increase for the 11 distribution companies (DisCos) in the country, starting from July.
In a statement on Friday in Abuja, the minister stated that Nigerians should expect an increased efficiency in the sector that would eventually lead to reduced tariffs while managing issues associated with foreign exchange and inflation.
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“The tariff for customers on service bands D & E (customers being served less than an average of 12hrs of supply per day over a period of one month) remains subsidized in line with the policy direction of the Federal Government,” Mamman said.
“The Multi-Year Tariff Order (MYTO) per NERCs regulation obtains inputs from operators in the market every 6 months to perform minor reviews and a major review is required every 5 years. Thus, as in January a minor review will occur in June. Given the timing for the Extraordinary review has also elapsed, a review will occur for consideration in Jan 2021.”
Source: Information Nigeria
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