Lagos — The Nigerian Electricity Regulatory Commission, NERC, has given some power distribution companies approval to raise their electricity tariffs.
The electricity distribution companies include the Port Harcourt Electricity Distribution Company (PHEDC); Jos Electricity Distribution Company (JEDC); Kano Electricity Distribution Company (KEDC); Kaduna Electricity Distribution Company (KEDC); Ikeja Electricity Distribution Company (IKEDC) and Ibadan Electricity Distribution Company (IBEDC) approval to increase their tariff rates.
The implementation of the new rates commenced in February 2022.
In a regulatory instrument cited as Multi-Year Tariff Order (MYTO-2022) for Port Harcourt Electricity Distribution Company Plc (PHED”), NERC based the increase on the Performance Improvement Plans of the DisCos and indices such as gas price, inflation, exchange rate, US inflation rate and available generation capacity.
NERC noted that the indices with potential impact on electricity rates were considered, adding that these indices shall be reviewed every six months to update the tariffs with changes in the indices as applicable in line with the MYTO.
SweetcrudeReports gathered that this was contained in the Commission’s Order No: NERC/304/2021, signed by Sanusi Garba, the chairman and Musiliu Oseni, the Vice Chairman on 29th December 2021.
“Consequently, following the approval of PHED’s PIP on 30th April, 2021, the Commission issued the MYTO-2021 Extraordinary Tariff Order effective from 1st July 2021 in consideration on PHED’s CAPEX proposals over a 5-year plan in line with the approved PIP.
“Accordingly, this MYTO-2022 order restates PHED’s approved 5-year CAPEX and relevant assumptions applied to forecast revenue requirements and applicable tariffs for the period 2021-2026 in line with MYTO Methodology and Regulations Procedure for Electricity Tariff Reviews in the Nigerian Electricity Supply Industry (NESI),” the document disclosed.
The document revealed that for the PHED A non-maximum demand customers who paid N56.16/kwh in January 2022 will now pay N60.67/kwh from February to December 2022.
The document also revealed that the B Non-MD customers who paid N56.64/kwh in January 2022, will now pay N59.64/kwh.
The document also noted that E-Maximum Demand 2 customers who paid N50.72/kwh in January 2022, will now pay N54.22/kwh from February 2022.
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