A new energy tariff has been approved by the Nigerian Electricity Regulatory Commission (NERC) for the electricity distribution companies (DisCos) in the country.
This was disclosed by the commission on Wednesday, August 21st in a series of publications tagged ‘2016-2018 minor review of the 2015 multi year tariff order’ (MYTO) for each DisCo.
According to the documents, the order became effective from July 1, 2019. The DisCos had cited lack of cost-reflective tariff as its major challenge on the sector, which has also hindered them from investing in their networks.
In 2018, the DisCos claimed they were incurring huge losses as they buy electricity at N80.88 and sell to consumers at N31.50, while recording a shortfall of N49.38 per kilowatt.
According to NERC, “The objectives of this Order are to reflect the impact of changes in the Minor Review variables for the period 2016 – 2018 to determine the cost reflective tariffs for the relevant years; and to ascertain revenue shortfalls in view of the differential between such tariffs and allowed tariffs in the Nigerian Electricity Supply Industry (“NESI”).”
Originally posted 2019-08-22 10:37:26.