Six power distribution companies (DisCos) have recieved approval from the Nigerian Electricity Regulatory Commission (NERC) to increase their tariffs.
According to a document issued on December 29, 2021, and signed by Sanusi Garba, NERC chairman and Musiliu Oseni, vice chairman, the new tariff took effect from February 2022.
Port Harcourt Electricity Distribution Company (PHEDC); Jos Electricity Distribution Company (JEDC); Kano Electricity Distribution Company (KEDC); Kaduna Electricity Distribution Company (KEDC); Ikeja Electricity Distribution Company (IKEDC) and Ibadan Electricity Distribution Company (IBEDC) are the six DisCos that NERC approved, according to a report by The Nation.
NERC said some of the indices considered for the tariff increase include gas price, inflation, exchange rate, US inflation rate and available generation capacity.
It added that these indices shall be reviewed every six months to update the tariffs with changes in the indices as applicable in line with the multi-year tariff order (MYTO).
The document titled ‘This regulatory instrument shall be cited as Multi-Year Tariff Order (MYTO-2022) for Port Harcourt Electricity Distribution Company Plc (PHED)’, read in part: “Consequently, following the approval of PHED’s PIP on April 30, 2021, the Commission issued the MYTO-2021 Extraordinary Tariff Order effective from July 1, 2021 in consideration of PHED’s CAPEX proposals over a 5-year plan in line with the approved PIP”.