Abubakar told the News Agency of Nigeria, NAN, in Lagos that the Multi Year Tariff Order 2, MYTO2 – which was inaugurated in 2012 – formalised the annual reviews till 2017.
She said that MYTO2 legalised the review of fixed charges on electricity tariff for the next five years from 2012.
“The annual tariff changes provides for yearly minor reviews to incorporate any changes in crucial indices such as gas price, inflation and exchange rates.
“Not all such minor reviews result in any change in the tariff though. For example, the minor review we conducted at the end of 2012 resulted in no change to the existing tariff. ”
She said MYTO 1 terminated on the midnight of May 31, 2012. and that MYTO 2 was for the period of June 1, 2012 to May 31, 2017.
“MYTO 2 is intended to be cost-reflective and provide financial motivations for instantly needed incremental investments in the industry.
“These investments, in turn, are expected to lead to a significant and unceasing improvement in the quantity of energy and quality of service enjoyed by consumers,” she said.
The NERC scribe said that investors in the nation’s power sector would not feel comfortable if uncertainty and inconsistency characterised electricity pricing in the country.
” We are also working to ensure that the Electricity Distribution Companies (DISCOs) meet their obligations to their customers and keep their customers informed of any tariff price changes.
“It is not the primary responsibility of the regulator to give electricity consumers information on review of tariffs, however, we may make any clarifications where necessary, ” she further stated.