By Emmanuel Addeh
The Nigerian Electricity Regulatory Commission (NERC) is to review tariffs paid to the 11 Distribution Companies (Discos) and revise the approved capital expenditure for the power distributors.
The capital expenditure allowance approved by NERC has always been a source of disagreement between the regulator and the distributors who insist that it is too low and has limited the capacity for network expansion.
Going by the Multi Year Tariff Order (MYTO) 2015, the approved average capital expenditure allowance to Discos remains $12 million, about N5 billion per Disco annually.
But MYTO is a framework that guides the pricing of electricity and by the rules is supposed to be adjusted twice a year.
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Electricity: Consumers, experts, others react as NERC plans new tariff review
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By Udeme Akpan & Ediri Ejoh
Consumers of electricity, experts, others, Tuesday, reacted as the Nigerian Electricity Regulatory Commission (NERC) plans a new tariff review in the nation.
In its notice issued April 26, 2021, NERC had stated: “Accordingly, this notice is issued to inform the general public and industry stakeholders of the Commission’s intention to conclude the Extraordinary Tariff Review process for the eleven DisCos, commence the processes for the July 2021 Minor Review of MYTO – 2020 to consider changes in inflation, foreign exchange, gas prices, available generation capacity, and CAPEX required to evacuate and distribute the said available generation capacity in accordance with EPSRA and other extant industry rules.
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.
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