Energy
The Nigerian Electricity Regulatory Agency (NERC) has said from July it would again review, nay increase electricity tariffs across board in the country. This is as the quality and stability of supply continues to dwindle by the day. Like in the past, it’s almost a done deal, unless President Muhammadu Buhari steps in or declines to approve the hike. Emmanuel Addeh writes that despite such exercises in the past, Nigerians who have always been at the receiving end, have not experienced commensurate value from the sector.
Again, the Nigerian Electricity Regulatory Agency (NERC), which now appears to be seen or heard only when plans are underway to embark on reviews, as if that’s its only statutory function, has announced that Nigerians may pay more for the elusive power supply a few months from now.
Plans are underway for the Nigerian Electricity Regulatory Commission (NERC) to review tariffs that customers pay to the 11 Distribution Companies (Discos) and to also approve a new capital expenditure (capex) for the energy distributors.
The source of discord between the regulator and the DisCos has always been the capital expenditure allowance approved by NERC since the distributors insist that it is too low and has limited their capacity for network expansion.
Going by the Multi Year Tariff Order (MYTO) 2015, the approved average capital expenditure allowance to DisCos remains $12million or roughly N5 billion per DiCco annually.
On the other hand, MYTO, is a framework that guides the pricing of electricity in the country and by the rules is supposed to be adjusted twice a year.