New electricity tariff takes effect next year

The Nigerian Electricity Regulatory
Commission (NERC) on Tuesday
approved a review of the Multi Year Tariff
Order (MYTO) 2 regime to take effect by
January 1, 2015.
With the commencement of MYTO 2.1, the
commission will now progressively hold
electricity distribution, transmission,
generation companies as well as other
market operators to the terms and
conditions of their licences.
The commission’s Chairman, Dr. Sam
Amadi, said, “it is expected that the take
off of MYTO 2.1 will bring about improved
service delivery as distribution companies
are now expected to implement their
investment plans for metering and
strengthen their networks in line with their
bid documents.”
He explained that the adjustment in
methodology was not expected to bring
about any increase in tariff to the
residential customers on R1 and R2, who
formed majority of electricity consumers,
at least not in the next six months.
Explaining the rationale behind the
adjustment, Amadi said the commission
had shielded ordinary Nigerians from the
possibility of rates shock that could have
accompanied the review while pressing
the operators for improved service
delivery and to abide by the agreement
they signed while acquiring the electricity
entities.