Plans by the Federal Government to carry out a review of power tariff may see power consumers nationwide start paying more for electricity.
This follows the Federal Government’s statement on Wednesday that it had commenced the procurement of four million meters meant to be distributed free of charge to unmetered power users nationwide.
It also put the number of unmetered electricity consumers in Nigeria at about eight million, adding that over 860,000 meters were distributed for free to power users under phase zero of the National Mass Metering Programme.
On Wednesday, it was learnt that the Nigerian Electricity Regulatory Commission would review the country’s power tariffs by next month, barring any unforeseen circumstance.
The NERC in a notice on the review of transmission loss factor in Multi Year Tariff Order, informed the general public and industry stakeholders of the commission’s intention to commence two key reviews.
It outlined them to include the Extraordinary Review of Transmission Company of Nigeria’s Loss Factor (TLF) in the MYTO, and the processes for the December 2021 review of MYTO – 2021.
It said the December 2021 MYTO review was to consider changes in relevant macroeconomic indices, generation capacity and capital expenditure required for evacuation and distribution of the available generation capacity in compliance with extant rules.
READ ALSO: ENDSARS PANEL REPORT: Nigeria Risks Arms Embargo Over Alleged Protesters’ Killings By Soldiers
According to the Commission, pursuant to the provisions of the Electric Power Sector Reform Act, the NERC adopted the MYTO methodology in setting out the basis and procedures for reviewing electricity tariffs in Nigeria.
The methodology provides for minor reviews every six months, major reviews every five years, and extraordinary tariff reviews in instances where industry parameters have changed from those used in the operating tariffs.
This change is usually to such an extent that a review is required urgently to maintain industry viability.
The commission noted that stakeholders and the general public were invited to send their comments to the NERC within 21 days from the date of the notice, which was on November 16, 2021.
Disclaimer
Comments expressed here do not reflect the opinions of Vantage News Nigeria or any employee thereof.
