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Electricity tariff review: Consumers, experts urge FG to soft-pedal amidst economic woes

Electricity tariff review: Consumers, experts urge FG to soft-pedal amidst economic woes
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Again, NERC Plans Review of Discos Tariffs, Capital Expenditure

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.

NERC Mulls Another Electricity Tariffs Review

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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