FG Approves Electricity Tariff Increase For Power Companies, DisCos

FG Approves Electricity Tariff Increase For Power Companies, DisCos

The Nigerian Electricity Regulatory Commission (NERC) on Thursday gave some Electricity Distributions companies approval to increase their tariff rates.
THECONSCIENCENG gathered that distributions Companies include; Port Harcourt Electricity Distribution Company (PHEDC); Jos Electricity Distribution Company (JEDC); Kano Electricity Distribution Company (KEDC); Kaduna Electricity Distribution Company (KEDC); Jos Electricity Distribution Company (JEDC); Ikeja Electricity Distribution Company (IKEDC) and the Ibadan Electricity Distribution Company (IBEDC).

NERC based the increase on the Performance Improvement Plans of the DisCos and indices such as gas price, inflation, exchange rate, US inflation rate and available generation capacity.

The new approval took effect from January 1, 2022 but the new rate was from February 2022.
According to the document titled: “This regulatory instrument shall be cited as Multi-Year Tariff Order (MYTO-2022) for Port Harcourt Electricity Distribution Company Plc (PHED”), the commission noted that the indices with potential impact of on electricity rates were considered.

The document that contained in the commission’s Order No: NERC/304/2021, which chairman, Sanusi Garba and Vice Chairman Musiliu Oseni signed on 29th December, 2021, added that these indices shall be reviewed in every six months to update the tariffs with changes in the indices as applicable in line with the MYTO.