Electricity tariff likely to increase by 61.5% soon

The tariff payable by electricity consumers may increase by 61.5 per cent any time soon following the latest revelation by the Nigerian Electricity Regulatory Commission on Friday, that it was waiting for a final approval from the Federal Government before implementing the new rate.

According to NERC, the actual tariff for one kilowatt-hour of power is meant to be N51, as against the current unit cost of N31.58 for which electricity distribution companies are selling the commodity.

NERC explained that the actual tariff of N51/KWH was arrived at based on the economic fundamentals considered when carrying out minor tariff reviews, adding that the commission had completed the process for the new tariff, but had yet to receive an approval from the Federal Government to announce its implementation.

When asked why NERC had mandated the Discos to continue selling power at N31.58/KWH, a development that had plunged the sector into a huge financial deficit, the NERC’s Principal Manager, Tariff and Rates, Aisha Mahmud, denied claims that the regulator forced the Discos to sell power at the reduced price.

Power distributors had argued that they were not remitting the amount required of them by the sector because the regulator mandated them to collect far less than the actual unit cost for a kilowatt-hour of electricity.

Stories by Simon Ugwu