The Federal Government through the Nigerian Electricity Regulatory Commission (NERC) has approved the increase in the electricity tariff payable by power consumers across the country.
This comes barely 2 months after the implementation of the hike in November 2020, which saw widespread opposition.
The increase which varies based on different consumer classes took effect from January 1, 2021 after the announcement made in Abuja by NERC in its December 2020 minor review of the Multi-Year Tariff Order (MYTO) and Minimum Remittance Order.
The MYTO order containing the latest tariff hike, Order NERC/225/2020, was signed by the new Chairman of NERC, Sanusi Garba, and it supersedes the previous Order NERC/2028/2020.
NERC providing reasons for the latest tariff hike said it considered the 14.9 per cent inflation rate rise in November 2020 and foreign exchange of N379.4/$1 as of December 29, 2020.
Other reasons were available generation capacity, the United States inflation rate of 1.22 per cent and the Capital Expenditure of the power firms before the tariff was raised.
The commission added that the new tariff would be effective till June 2021 while a Cost Reflective Tariff would be activated from June to December 2021.
WATCH VIDEO BELOW.
