By Oluwaseun Aderounmu
Despite the economic downturn occasioned in Nigeria as a result of Coronavirus and #Endsars protest, the Federal Government had increased the electricity Tariff payable by power consumers across the nation.
The approval for the increment in the electricity tarrif was given by the Nigeria Electricity Regulatory Commission (NERC), as the increase changes base on different consumers’ class with effect from January 1, 2021.
As announced by the NERC on the tariff hike in December 2020, minor review of the multi-Year Tarrif order and minimum remittance order obtained by Sparklight News on Tuesday.
The change in electricity tariff is taking effect just two month after the Federal Government through NERC implemented a tariff hike in November 2020, which attracted widespread opposition
The new chairman of NERC, Sanusi Garba signed a multi-year tariff order, NERC/225/2020 which serve as the latest from the previous order NERC/2028/2020.
Providing reason for the latest tariff increase, the commission said it considered the 14.9 per cent inflation rate rise in November 2020 and foreign exchange of N379.4/$1 as of December 29, 2020.
With other available generation capacity, the United States rising rate of 1.22 percent and the capital expenditure of the power firms before the electricity tariff was raised.
Information gathered shows that the revised service–based tarrif saw changes in the rate payable by the various classes of electricity users unlike the one of November 2020 without involving low electricity consumers .
NERC also stated that the new tariff would be effective till June 2021 while a Cost Reflective Tariff would be activated from June to December 2021.