The Federal Government has again increased the electricity tariff payable by power consumers across the country.
This was contained in a revised Multi-Year Tariff Order (MYTO) signed by the new Chairman of Nigerian Electricity Regulatory Commission NERC, Mr Sanusi Garba.
According to the MYTO dated December 30 2020, NERC said it was embarking on the hike considering the changes in inflation rate, foreign exchange, generation capacity and gas prices, among others.
The latest increase comes about four months after the last one, which was sternly but unsuccessfully opposed by organised labour, prompting a temporary suspension, which finally led to negotiations that did not yield much.
In the new Order NERC/225/2020, the commission said it considered the 14.9% 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% and the Capital Expenditure (CAPEX) of the power firms to raise the tariff.
The order also covers the rate of increases expected to be paid by Nigerians between now and 2024, with a unit costing as much as N74 by then.
