Just in: FG jacks up electricity tariff by 50 per cent

Effective from January 1, 2021, electricity consumers will start paying 50 per cent hike in electricity tariff.

This is because the Nigerian Electricity Regulatory Commission (NERC) has approved over 50 per cent raise in electricity tariff as a new year gift for Nigerians.

The new tariff regime is operational in all the 11 electricity Distribution Companies (DISCOs).

Persecondnews recalls that in November 2020 NERC had imposed the implementation of much criticized tariff hike on Nigerians.

The Organized Labour had threatened a national strike over the raise in electricity tariff and petrol pump price.

They also demand installation of pre-paid meters for all houses to eliminate “crazy, estimated’ bills.

The Federal Government was forced to suspend it to pave way for negotiation and said it had provided six million pre-paid meters to be distributed free across the country.

But some DISCOs particularly the Ibadan Electricity Distribution Company (IBEDC) and Benin Distribution Company (BEDC) are yet to install the meters.

On November 1, 2020, the suspended tariff was implemented by DISCOs after some discounts were given for customers who get 12 hours and above power supply daily.

In a revised Multi Year Tariff Order (MYTO), the new Chairman of NERC, Engr. Sanusi Garba, said the new tariff had taken effect from January 1, 2021, and superseded the previous Order NERC/2028/2020.

In the new Order NERC/225/2020, the commission said it considered the 14.9 per cent inflation rate rise in November 2020, foreign exchange of N379.4/$1 as of December 29, 2020, available generation capacity, US inflation rate of 1.22 per cent and the Capital Expenditure (CAPEX) of the power firms to raise the tariff.

The revised Service Based Tariff (SBT) also saw increase in the rates payable by all classes of electricity users unlike the one of November 2020, that exempted low power getters.

NERC Order revealed that the new tariff will be operational till June 2021 while a Cost Reflective Tariff (CRT) expected to raise the new cost higher will be activated from June to December 2021.