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The Nigerian Electricity Regulatory Commission (NERC) has released new guidelines on electricity tariff hikes.
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The guidelines are based on the 2023 Electricity Act, which requires operators to ensure electricity companies can cover their costs and make a fair profit.
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The guidelines provide for a major review of electricity tariffs every five years.
The Nigerian Electricity Regulatory Commission (NERC) has rolled out new guidelines on electricity tariff hikes within the country’s electricity supply industry.
According to Sanusi Garba of NERC, the guidelines are based on the 2023 Electricity Act, which requires operators to ensure electricity companies can cover their reasonable costs, make enough money to keep operating, and earn a fair profit on their investments.
Section 116(1) of the Act provides that activities in generation, transmission, distribution, trading, supply, system operation, and electricity distribution franchising shall be subject to tariff regulation.
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The guidelines provide for a major review of electricity tariffs every five years, during which all tariff assumptions are reviewed to ensure the industry’s viability and efficiency.
“In exercise of the powers conferred in Section 116 of the Act, the commission has developed and adopted the Multi-Year Tariff Order Methodology as an incentive-based price regulation framework for the determination and projection of tariffs payable in the Nigerian Electricity Supply Industry,” the guideline states.
NERC Denies Approval of 50% Electricity Tariff Increase
The Nigeria Electricity Regulation Commission (NERC) has denied claims that there has been a new electricity tariff hike of 50%.
In a statement released via its official Twitter account, NERC, said that no approval has been granted for a 50% tariff increase for electricity distribution companies, which took effect on January 1, 2021.
