– An emerging report indicates that Nigerians would have to pay more for electricity in 2021
– The Nigerian Electricity Regulatory Commission has explained why it approved a tariff hike
– The new increase may generate a negative reaction from Nigerians
The federal government has approved over 50% hike in electricity tariff payable by customers of the 11 Distribution Companies (DisCos).
The tariff increase was approved by the Nigerian Electricity Regulatory Commission (NERC), Daily Trust reported.
The publication stated that the new tariff increase took effect on January 1, 2021, and supersedes the previous Order NERC/2028/2020, according to a revised Multi Year Tariff Order (MYTO) signed by the new Chairman of NERC, Engr. Sanusi Garba, on December 30, 2020.
The commission explained that it approved the tariff increase due to the 14.9% inflation rate rise in November 2020, foreign exchange of N379.4/$1 as of December 29, 2020, and the available generation capacity.
The newspaper stated that the new tariff increase the revised Service Based Tariff (SBT) also saw an increase in the rates payable by all classes of electricity users unlike the one of November 2020, which exempted low power getters.
According to the New Telegraph, the NERC Order revealed that the new tariff is effective till June 2021 while a Cost Reflective Tariff (CRT) expected to raise the new cost higher will be activated from June to December 2021.
The new tariff hike comes just two months after it finally implemented a much-opposed hike in November 2020.
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