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NERC places six months embargo on electricity tariff hike for domestic consumers

By BusinessNews Staff on December 26, 2014

After its recent review of the Multi Year Tariff Order (MYTO-2) framework, the Nigerian Electricity Regulatory Commission (NERC) has approved new electricity rates that are expected to start running from January 1, 2015 for Nigeria’s Electricity Supply Industry (NESI).
NERC however said the new electricity tariff which follows adjustments in some key factors that statutorily influence its review of the MYTO framework will not be applied to domestic consumers in the country for the next six months.
These consumers are categorised under Residential (R) 1 and 2 in the MYTO framework and form majority of consumers in the country’s electricity market.

The commission however explained that the six-month embargo on the new tariff for domestic consumers was informed by widespread complaints of poor electricity services to them by the various distribution companies.
It therefore said the R1 and 2 consumers would be exempted from paying the increased rates for the next six months until it reviews the MYTO at that period.

The Chairman of NERC, Dr. Sam Amadi, said in an interview in Abuja that the regulatory commission opted for such decision to protect domestic consumers from being exposed to increased costs without proportionate benefits.
Amadi said the commission had shielded ordinary Nigerians from the possibility of rates shock that could have accompanied the review.
He asked operators in the market to then improve on their service to consumers in compliance with the agreement they signed while acquiring the electricity entities.

[ThisDay]

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