Electricity tariffs rise again – 9jaflaver
The federal government has announced another increase in electricity tariffs in the country.
The tariff increase has been approved by the Nigeria Electricity Regulatory Commission, as the increase, which varies according to different consumer classes, took effect from January 1, 2021.
NERC announced a rate hike in its minor revision of multi-year rates and minimum remittances in December 2020, received by our correspondent in Abuja on Tuesday.
The tariff hike takes effect just two months after the government, through the NERC, implemented a tariff hike in November 2020, which met with widespread opposition.
The MYTO Order containing the most recent tariff increase, Order NERC / 225/2020, was signed by the new President of NERC, Sanusi Garba, and replaces the previous Order NERC / 2028/2020.
Explaining the reasons for the latest rate hike, the commission said it takes into account a 14.9% increase in inflation in November 2020 and the N379.4 / USD exchange rate as of December 29, 2020. …
In other words, there were generating capacity available, US inflation rate of 1.22%, and capital expenditure by utilities prior to tariff increases.
The results showed that, in line with the revised service-based tariff, the tariffs payable for different classes of electricity consumers were increased compared to the November 2020 tariff that freed low electricity consumers.
The Commission also said that the new tariff will be valid until June 2021, and the cost-reflective tariff will be activated from June to December 2021.
The commission said last month it was reviewing a different rate, hence the latest order announcing a rate hike for consumers.
Last September, the commission raised the electricity tariff, but this met with stiff opposition from organized workers as unions threatened to call a nationwide strike.
After a series of negotiations, this tariff was reduced depending on the classes of consumers and the number of hours of electricity received by the electricity consumer.
On November 1, 2020, the energy distribution companies initiated the implementation of the revised electricity tariff, which was jointly agreed by trade union organizations and the federal government.
The Workers’ Congress of Nigeria told The PUNCH that the federal government will not return to reflective service on September 1, 2020, prompting widespread protests across the country.
NLC Vice President, who is also the secretary general of the National Union of Electricity Workers, Joe Adjaero, said the tariff increases effective September 1, 2020 have been revised downward across most categories.
But two months after the revised tariff went into effect, which raised several tariff levels, the government raised the tariff again.