FG Gives Six Electricity Companies Approval to Increase Tariffs By 6.9%; here are the Areas to be Affected
- The Federal government has approved a 6.90 per cent upward review of electricity tariffs across the country
- The Nigerian Electricity Regulatory Commission (NERC) gave the final approval to six power distribution companies (DisCos)
- The approval will see Nigerians in Kano, Ibadan among others pay more for electricity in the coming months
PAY ATTENTION: Click “See First” under the “Following” tab to see Legit.ng News on your Facebook News Feed!
Nigerians are set to pay more for electricity in the coming months as six distribution companies have finally received approval from the Nigerian Electricity Regulatory Commission to adjust their tariff upwards.
According to a document issued on December 29, 2021, and signed by Sanusi Garba, NERC chairman, and Musiliu Oseni, vice chairman, the new tariff took effect from February 2022.
The Nation Newspaper in its reports listed the DisCos as Port Harcourt Electricity Distribution Company (PHEDC); Jos Electricity Distribution Company (JEDC); Kano Electricity Distribution Company (KEDC); Kaduna Electricity Distribution Company (KEDC).
Others are Ikeja Electricity Distribution Company (IKEDC) and Ibadan Electricity Distribution Company (IBEDC).
PAY ATTENTION: Share your outstanding story with our editors! Please reach us through firstname.lastname@example.org!
NERC, the independent regulatory body with authority for the regulation of the electric power industry in Nigeria said some of the indices considered for the tariff increase include gas price, inflation, exchange rate, US inflation rate, and available generation capacity.
It added that these indices shall be reviewed every six months to update the tariffs with changes in the indices as applicable in line with the multi-year tariff order (MYTO).
The document titled This regulatory instrument shall be cited as Multi-Year Tariff Order (MYTO-2022) rfor Port Harcourt Electricity Distribution Company Plc (PHED), reads in part:
“Consequently, following the approval of PHED’s PIP on 30th April 2021, the Commission issued the MYTO-2021 Extraordinary Tariff Order effective from 1st July 2021 in consideration on PHED’s CAPEX proposals over a 5-year plan in line with the approved PIP.
“Accordingly, this MYTO-2022 order restates PHED’s approved 5-year CAPEX and relevant assumptions applied to forecast revenue requirements and applicable tariffs for the period 2021-2026 in line with MYTO Methodology and Regulations Procedure for Electricity Tariff Reviews in the Nigerian Electricity Supply Industry (NESI).”
Breakdown of charges
The document said that for A-Non MD customers who paid N56.16/kWh in January 2022 will now (February to December 2022) pay N60.67/kWh), TheCable reports.
Also, B Non-MD customers who paid N56.64/kWh in January 2022 will now pay N59.64/kWh.
It added that E-MD2 customers who paid N50.72/kWh in January 2022 will now (From February 2022) pay N54.22/kWh.
Full list of areas to be affected by the changes
- IKEDC- Parts of Lagos States, Abule Egba, Akowonjo, Ikeja, Ikorodu, Oshodi, Shomolu
- IBEDC- Oyo, Ogun, Osun, Kwara and parts of Niger, Ekiti and Kogi states
- JEDC- Bauchi, Benue, Gombe, Plateau
- KNEDC- Kaduna, Kebbi, Sokoto, Zamfara
- KEDC- Kano, Katsina, Jigawa
- PHEDC- Rivers, Bayelsa, Cross River and Akwa-Ibom
Cost of data, calls to increase as telecommunication companies write NCC for tariff change
Legit.ng reported that Nigerians are set to pay more for calls and data as telecommunication companies are proposing a new tariff increase by 40 per cent.
They made this known in a letter they sent to the Nigerian Communications Commission titled, ‘Impact of the Economic and Security Issues on the Telecommunications Sector.
The letter was written by the telecommunications companies under the aegis of the Association of Licensed Telecommunication Operators of Nigeria to the NCC.