FG Hikes Electricity Tariff

The federal government has announced an increase in electricity tariff from the present rate of N8.50 to N10.00 per kilowatt hour.

A statement issued yesterday by the head, media and public relations unit, Nigerian Electricity Regulatory Commission (NERC), Mrs. Maryam Yaya Abubakar, said the new tariff would be operational from July 1.  

“The Nigerian Electricity Regulatory Commission (NERC) on Tuesday informed chief executive officers of electricity distribution companies that the last schedule of the 2008/2013 regime of Multi-Year Tariff Order (MYTO) would be operational from July 1, 2011,” the statement said.

“This development will see to a marginal increase in kilowatt hour of electricity from N8.50 to N10.00 from that date,” it added.

Commenting on the development, NERC chairman Dr. Sam Amadi said, “The marginal increase was approved in 2008, stating that the commission has a responsibility to inform the public as part of its commitment to transparency.

The commission in its notice to chief executive officers of electricity distribution companies of the take-off date of 2011 schedule, however, warned them to ensure improved service delivery to their customers.

“The commission hereby reminds you of the responsibilities owed to your customers particularly as regards its guidelines on customer complaints handling, connection and disconnection procedures, customer service standards of performance and meter reading.

“We will be resolute and uncompromising in ensuring compliance and imposing sanctions on chief executive officers and managers of companies that fall short of the required standards,” Amadi warned.

NERC in 2008 introduced the Multi-Year Tariff Order (MYTO) to ensure that prices of electricity are predictable and to mobilise the required funds to the industry by attracting needed private sector investments through a tariff system that ensures fair return on investment while protecting customers against profiteering.

This increase in tariff is within the present MYTO, while another possible increase is expected by January 1, 2012, following the completion of the electricity tariff review currently ongoing.