NERC issues order on suspension of Electricity Tariff hike
The Nigerian Electricity Regulatory Commission (NERC) has issued an order mandating Electricity Distribution Companies (DISCOs) in the country to suspend the Sept. 1 tariff increase for 14 days.
The commission’s suspension order of the Multi Year Tariff Order (MYTO) 2020, with order number NERC/209/2020 was signed by Prof James Momoh, NERC’s Chairman.
The order partly read. “the Commission, pursuant to sections 32 and 76 of the Electric Power Sector Reform Act (“EPSRA”), issued the Multi-Year Tariff Order 2020 for the 11 successor electricity distribution companies (“DisCos”) with effect from 1 September 2020. One of the primary objectives of the MYTO 2020 Order is ensuring that rates charged by DisCos are fair to customers and are sufficient to allow DisCos that operate efficiently to recover the full cost of their activities, including a reasonable return on the capital invested in the business.
According to the order, “all tariffs for end-use customers and market obligations of the DisCos during the 14-day suspension shall be computed on the basis of rates applicable as at 31 August 2020.”