A Review of the Nigerian Energy Industry

Electricity consumers decry planned tariff hike

01 October 2015, Jos—Electricity consumers in Plateau, Benue, Bauchi and Gombe states have expressed displeasure that despite appeals for improved output before increase in tariff, the Jos Electricity Distribution Plc, JED Plc was bent on implementing the new tariff system.


The consumers from the states during a session organized by the company yesterday in Jos to unveil the proposed ten-year Tariff plan which is to span from 2016 to 2026, said there was still inadequate power supply as well as other sundry issues which the Company had not addressed and noted that the planned increase was unacceptable.

However, the Managing Director/CEO of JED Plc, Mr. Ibrahim Hashim, appealed to the consumers to bear with the company, noting that the company could not unilaterally increase tariff but was ready to listen to consumers’ complaints and suggestions before reaching a conclusion.

He said: “The Nigerian Electricity Regulatory Commission, regulates tariffs through a methodology known as the Multi-Year Tariff Order, MYTO, a 15-year tariff path.”

“This undergoes major reviews every five years and two minor reviews every year, usually in June and December.

“The production and distribution of electricity is one of the most challenging, complicated and capital-intensive industrial processes in the world.

“Reasons like interest rate, exchange rate, cost of gas, cost of doing business and other sundry issues necessitate the request for a tariff review, since the last major review in 2012.

“This tariff will enable us to recover the cost of power, make investment in the network, repair and or replace the old and obsolete equipment in the network.”
He appealed to the consumers to be calm as meetings with stakeholders were ongoing before a final decision would be taken on the issue.


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