NERC stops new tariff for residentialelectricity consumers

The Nigerian Electricity Regulatory
Commission (NERC) has frozen the new
tariff for residential consumers till June
2015. This is contained in a statement
signed yesterday by Mr Michael Faloseyi,
the Head of Media.
The statement said the tariff, which was
signed, was a review of the Multi Year
Tariff Order (MYTO) 2 to factor the losses
that were now different. It said the new
price of gas was usually part of the minor
review done every six months.
The statement said the review had raised
the cost of distributing power supply
nation-wide by the 11 electricity
Distribution companies (Discos).
It said the tariff was expected to increase
for all electricity consumers.
“But because of NERC’s commitment to
ensure that consumers are not further
exposed to increased cost until there are
improvements in supply, which we expect
shortly, we have frozen the increment for
six months for Residential consumers
(R2).
“We approved an amendment to the MYTO
tariff basically which means a new tariff
order that continues with the existing
framework but now shows a different
figure for the remaining five year tariff
structure,” it said.
According to the statement, with the
commencement of MYTO 2.1, NERC will
hold electricity distribution, transmission,
generation companies and other market
operators to the terms and conditions of
their licences.”
The measures were being put in place to
ensure that the new owners fund their
operations and improve electricity supply.
It said the rationale behind the
adjustment was to shield ordinary
Nigerians from possibility of rates shock
that could have accompanied the review.
“The review is imperative on account of
the take-off date of January 1, 2015 for
the transition electricity market and the
Memorandum of Understanding between
the Central Bank of Nigeria (CBN) and the
Nigerian Electricity Supply Industry,” it
said.