Electricity consumers will pay more for power this year

The new tariff hike takes effect from January 1.

The Nigerian Electricity Regulatory Commission (NERC) has approved an increase in electricity tariff nationwide.

The new tariff takes effect from January 1, 2021, according to a directive signed by NERC Chairman Sanusi Garba.

NERC states that the new tariff will be enforced until the issuance of another minor review order or an extraordinary tariff review order by the commission.

Some of the indices considered for the upward review include inflation rate, exchange rate, US rate of inflation, available generation capacity, gas price, MDA losses and capex adjustment, the NERC statement adds.

Increase in electricity tariff was a contentious issue in 2020.

The national assembly had asked NERC to suspend the increase at the time due to the economic impact of the COVID-19 pandemic on the populace. However, there was an increase in tariff afterwards.

This would be the second electricity tariff hike within two months. The last hike rolled into effect in November.

Electricity companies maintain that only a cost reflective tariff in the electricity sector would guarantee regular power supply to homes and businesses.

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