NERC To Consider Changes In Inflation, Exchange Rate & Gas Prices In Review – Politics

According to the electricity regulatory body, actors to be considered in the review process include changes in inflation, foreign exchange, gas prices, available generation capacity, and capital expenditure (CAPEX) required to evacuate and distribute the available generation capacity.

The proposed electricity tariff review is in consonance with the MYTO methodology in setting out the basis and procedures for reviewing electricity tariff in the country which was adopted by NERC and backed by the provisions of the Electric Power Sector Reform Act (“EPSRA”).

Accordingly, the MYTO of 2015 provides for Minor Reviews every 6 months, Major Reviews every 5 years – which was due in 2020, and Extraordinary Tariff Reviews in instances where industry parameters have changed from those used in operating tariffs to such an extent that a review is urgently required to maintain the viability of the industry.

Meanwhile, NERC in its second-quarter 2020 industry report, noted that the capacity utilization rate of generated power has been consistently challenged by issues relating to gas supply shortages, as well as transmission and distribution network bottlenecks despite the increase in total electric energy generated.

Also, the Commission noted that the financial viability and commercial performance of the industry have also been challenging as the total billing to and collection from electricity customers by all the eleven (11) DisCos stood at N164.07 billion and N121.61 billion respectively in Q2 2020.

Hence, DisCos’ billing efficiency declined to 68.38% in Q2 2020 from 78.38% in Q1 2020; however, their collection efficiency increased to 74.12% in Q2 2020 from 61.18% in Q1 2020.

Barring any opposition from labour, we expect electric energy tariffs to be reviewed upward as a result of increases in the aforementioned parameters. This is more so as the industry has been struggling with operators’ inability

to recover their costs amid unfavorable selling prices, and relatively low collection efficiency rate due to estimated billing. Nevertheless, we feel that the massive roll-out plan of prepaid meters and further capital investment in transmission infrastructure would kick-start the much-desired recovery in the sector.

God bless Nigeria

1 Like 4 Shares

na una sabi. a country that can still not guarantee 24hrs electricity a day even if it’s once in a week.

5 Likes 1 Share

4 Likes

20 Likes 1 Share

As in reduction in tariff

Another increase awaiting. Buhari you too much. We are still paying more for darkness

8 Likes

God bless Nigeria

10 Likes 1 Share

7 Likes

Current tariff not affordable

2 Likes

They have never ever reviewed the price downward, kontinue

2 Likes

Africans need to stop sending raw material out to Europe and start production.

Hmmmm….guess this is the only directive that’ll be effected with the speed of light. Tariff increase has been on in a subtle ways since last year. What happens to the directive on Prepaid Meter to all Nigerians. That’ll solve a lot of the problems we’re facing. If they the Discos know the people can only pay for what they use, definitely, they’ll improve their output. Estimated billing is just milking a lot of people…… Get A Free Quotes For Your, Aluminium Systems, Suspended Ceilings, Glass Systems (windows, Doors, Shower Stalls, Etc.) WhatsApp/Call us below +2348033301246 +2348026308585

D lifeless vegetable in aso rock is less concern.

Am sure bubu will be shocked the day people rise up to these guys tariff. Still can’t believe it has gotten to the part of power supply being more expensive than normal house rent.

6 Likes

Shey dem swear for this demonic government ni?

2 Likes

Anyways, if you need that scholarship-winning CV or Motivational letter, Hit me up! See my siggy

Ok. Fingers crossed.

God o….Nigeria needs intervention! So when someone that earns 50k pays above 10k to Electricity disco, how much will remain to buy food, pay school fees, rent, medicals, transport, etc? Things have really gone south in this Buhari administration. It was never this bad!

2 Likes

Where are the prepaid meters?

This shouldn’t be taken lightly by Nigerians, we must all stand up and make a brutal protest… If this country will burn, let it burn.

We hope they won’t change mouth again.

Power transmission must increase. But we have never been able to transmit more than 6, 000 kilowatt

More than half of consumers are not metered.

The regulators have been compromised to continue to approve all the increase

Who does that ?

Well, when there was no inflation, people were already unleashing their angers on them. Now that everything is tough on Nigerians, be ready to be accosted by “unknown attackers” in every home you take your 5tup1d estimated bills to.

I’ve been on 100% alternative energy for six years now. I’m free from the encumbrances of PHCN but I can’t bear to see the cheating of Nigerians by these inepts.

I’m 100% solar, powering all moderate home gadgets you can think of. I still like to connect to the national grid but not until I’m able to lay my hands on a prepaid meter. I have been chasing BEDC for prepaid meter for 3 years now without getting anywhere with it. The woman in charge of BEDC – that former first bank MD – is touted to be the devil behind non-issuance of meters to customers. A woman fah!

And someone will be singing all over NL that “the future is female”

(1) (2) (Reply)

Fuji Maestro Sikiru Ayinde Barrister Is Dead / Gej – Nigeria’s Oil Reserve Are Low – 55 Days Reserves Is What We Have / My Husband, My Brother, My Friend, My Child” – Read Bianca’s Gripping Tribute To

Viewing this topic: samwheel(m), Iamdboss, trustfund2014, goadson82, collele(m), BruncleZuma, Draxy(m), Oyinlade07(m), jidepopeson, bcomputer101, Matty1515, InyangJonah1, Esseite, Saao(m), McCoy662(m), shogz89, Drzak(m), lecksam(m), IRIENBOY(m), olamik, JANK23H(m), Akaegwu(m), elpochas, ojabel(m), sammyj, mazinaija, Sailor22(m), bharseeth(m), Vireani79, hapheeyxz, Ajiswaggs(m), chosky2589(m), Aharandu, DokunOmowon, Ebao2(m), THEKING9C(m), naheem8307(m), Stinbiggy21, kkmny81, pointstores(m), Mcreloaded(m), olotooto, enitey(f), 3gpvids, Kabir2Mohammad(m), funshint(m) and 112 guest(s)

Read More