NERC says you’ll start paying more for electricity from April

The Nigerian Electricity Regulatory Commission has said that Nigerians will begin to pay more for electricity starting from April 2020.

The commission announced the development in its ‘December 2019 Minor Review of Multi-Year Tariff Order 2015 and Minimum Remittance Order for the Year 2020, ’ dated December 31, 2019.

According to Punch, the order, effective from January 1, 2020, was issued to reflect the impact of changes in the minor review variables in the determination of cost-reflective tariffs and relevant tariff and market shortfalls for 2019 and 2020.

The commission said the Federal Government is ready to fund the revenue arising from the difference between cost-reflective tariffs and the electricity tariffs being paid by consumers.

It said, “The Federal Government’s updated Power Sector Recovery Program does not envisage an immediate increase in end-user tariffs until 1st April 2020 and a transition to full cost reflectivity by end of 2021.

“In the interim, the Federal Government has committed to funding the revenue gap arising from the difference between cost-reflective tariffs determined by the commission and the actual end-user tariffs payable by customers.”

NERC also urged all DISCOS settle their market invoices in full as adjusted and netted off by applicable tariff shortfall, Punch reports.

“All FGN intervention from the financing plan of the PSRP for funding tariff shortfall shall be applied through NBET and the market operator to ensure 100 per cent settlement of invoices issued by market participants,”

“Effectively, this order places a freeze on the tariffs of TCN and administrative charges until April 2020 at the rates applied in generating MO invoices for the period of January to October 2019.”