- Market to lose N1.1trn in 9 months
Prior to the planned increase in electricity tariff scheduled for July 1, 2020 by distribution companies, there was palpable tension across the country. However, the plan was suspended following disagreements that greeted the process. If the hike was enforced, electricity consumers would have seen an increase in their bills from 60 per cent to nearly 100 per cent.
Within the last three months, the Service Reflective Tariff increase has been suspended twice. The hike was first approved by the Nigerian Electricity Regulatory Commission (NERC) in March 2020 after considering applications of the 11 distribution companies (DisCos) for extraordinary review of the prevailing tariff structure, tagged Multi Year Tariff Order (MYTO) 2015.
The DisCos had insisted that the NERC should provide a Cost Reflective Tariff (CRT) towards boosting their performance and ensuring increased hours of electricity supply to consumers. Prior to this, MYTO 2015, which was enforced in February 2016, spiking tariff hike to over 60 per cent, had never been increased since then.