The Federal Government of Nigeria through the Nigerian Electricity Regulatory Commission (NERC) has moved to increase energy tariff for the electricity distribution companies (DisCos) nationwide.
The body revealed this on Wednesday, August 21st in a series of published reports tagged ‘2016-2018 minor review of the 2015 multi year tariff order’ (MYTO) for each DisCo.
According to the reports, the order became effective since July 1, 2019.
The DisCos had cited lack of cost-reflective tariff as its major challenge on the electricity sector, which has also stopped them from investing in their networks.
In 2018, the DisCos revealed they are incurring huge losses as they buy electricity at N80.88 and sell to consumers at N31.50, which results to a shortfall of N49.38 per kilowatt.
“The objectives of this Order are to reflect the impact of changes in the Minor Review variables for the period 2016 2018 to determine the cost reflective tariffs for the relevant years; and to ascertain revenue shortfalls in view of the differential between such tariffs and allowed tariffs in the Nigerian Electricity Supply Industry (“NESI”),” NERC said.