On Monday it was announced by The Nigerian Electricity Regulatory Commission that there will be another tariff review which would hold in July for Nigeria’s II Power Distribution Companies.
This was disclosed in its notice of Minor and Extraordinary Review of Tariffs for Electricity Transmission and Distribution Companies, a development that might lead to an increase in the tariffs paid by electricity users.
The commission explained that changes in inflation, foreign exchange, gas prices, available generation capacity and capital expenditure was the cause of the extraordinary tariff review.
However, the commission, stated that extraordinary tariff reviews were done in instances where industry parameters had changed from those used in the operating tariffs to such an extent that a review was urgently required to maintain the viability of the industry.
The Multi-Year Tariff Order provided for minor reviews every six months and major reviews every five years.
The commission released that there was a range of hearing from the public and the stakeholders in the first quarter of 2020 on the tariff review of the II electricity Discos to consider their five-year Performance Improvement Plans (PIPs) respectively.
The reason for the notice was to informed the general public and industry stakeholders of the commission’s intention to conclude the extraordinary tariff review process for the Discos.
For The July 2021 minor review of Multi-Year Tariff Order – 2020 would commence the processes to consider changes in inflation, foreign exchange, gas prices, available generation capacity.
The commission said it would also consider the capital expenditure required to evacuate and distribute the said available generation capacity in accordance with the power sector Act and other extant industry rules.
The general public and the stakeholders were invited to send their comments to the commission within 21 days from the date of the publication.
By our Reporter.