DisCos to increase tariff from Jan 1-NERC
The Nigerian Electricity Regulatory Commission (NERC) has directed the 11 electricity distribution companies (DisCos) to increase their tariff effective from January 1, 2020.
The NERC published the new tariffs for the different DisCos and categories of customers on its website via its order dated 31st December, 2019, which its chairman, Prof. James Momoh and Secretary Dafe Akpeneye issued in Abuja on Saturday.
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The commission said that this order supersedes “other orders issued on the subject matter, and shall take effect from 1st January 2020 and shall have effect on the issuance of a new Minor Review Order or an Extraordinary Tariff Review Order by the NERC.”
It noted that the order has taken into consideration of the actual changes in relevant macroeconomic variables and available generation capacity as at October 2019 in updating the MYTO operating -2015 Tariff Order for 2019 in line with the provisions of the amended MYTO Methodology.
It said that projections are made for the variables for Year 2020 and beyond based on the best available information .
The Nation reports that the commission however based adjustments in the tariff on the relevant data it obtained from the Central Bank of Nigeria (CBN) and National Bureau of Statistics (NBS) such as average monthly inflation rate of 11.3 per cent, exchange rate of N309.97.
It also added that it obtained its data on inflation rate from the US rate of inflation , which projected 1.8 percent for the period of January to October 2019.
Gas, which is one of the MYTO variables, according to the commission, its price has been $2.50/MMBTU and gas transportation $0.08/MMBTU.
For the Abuja Electricity Distribution Company (AEDC) residential customers R3 that were paying N27.20 per unit are to now pay N47.09.
The customers are now to pay N19.89 more per unit. It represents 236.75 per cent increase.
The commercial customers C3 that paid N27.20 per unit in 2015 when the tariff was last adjusted and implement are now to pay N47.09 in 2020.
For the Ikeja Electricity Distribution Company Customers, the R3 category paying N26.50 per unit is to now pay N36.92 per unit.
The customers are now to pay additional N10.02 per unit.
The tariff however insisted that “All DisCos are obligated to settle their market invoices in full as adjusted and netted off by the applicable tariff shortfall.
“in the determination for compliance to the minimum remittance threshold in this Order, the commission shall consider verified receivables from MDAs for the settlement period and DisCos’ historical collection efficiency for MDAs.
