FG confirms plans to increase electricity tariff within measures
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The Minister of Power, Sale Mamman says there is no plan to significantly raise tariff.
The Minister in a statement signed by him said instead of significant hike in electricity tariff, Nigerians should expect an increase efficiency in the sector to reduce tariffs while managing headwinds from foreign exchange and inflation.
The clarification came amidst reports of possible major increase in the price of electricity that has dominated the public space.
Mamman explained that the order issued by NERC on the 26th of April 2021 titled “Notice of Minor and Extraordinary Review of Tariffs for Electricity Transmission and Distribution Companies” was a routine procedure.
He said the review planned by NERC is in accordance with Section 76 of the Electric Power Sector Reform Act of 2005.
According to the statement “The Multi-Year Tariff Order, MYTO, per NERCs regulation obtains inputs from operators in the market every 6 months to perform minor reviews and a major review is required every 5 years.
Thus, as in January, a minor review will occur in June. Given the timing for the Extraordinary review has also elapsed, a review will occur for consideration in January 2021.
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