Tuesday, January 5, 2021 12:33 pm
Five days into the New Year, Nigerians got a gift that many will found unpalatable with about 50 per cent increase in electricity tariff by the electricity distribution companies, DISCOS.
According to the Nigerian Electricity Regulatory Commission (NERC) the hike in electricity tariff became necessary as a result of the changes in inflation rate, foreign exchange, generation capacity and gas prices, among others.
NERC new Chairman, Sanusi Garba and and Commissioner, Legal, Licensing and Compliance, Dafe Akpeneye signed the memo introducing the revised Multi Year Tariff Order on December 31, 2020.
The memo indicated that the new tariff increase took effect on January 1, 2021.
It added that the latest order, NERC/225/2020, supersedes the previous Order NERC/2028/2020.
NERC said the factors taken into consideration were: “14.9 per cent inflation rate rise in November 2020, foreign exchange of N379.4/$1 as of December 29, 2020, available generation capacity, US inflation rate of 1.22 per cent and the Capital Expenditure (CAPEX) of the power firms.”
Organised labour unions had unsuccessfully opposed the last increase in electricity tariffs carried out four months ago by the Discos.