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HomeTop NewsIkeja Electric, five other DisCo get NERC approval to hike tariffs

Ikeja Electric, five other DisCo get NERC approval to hike tariffs

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Ikeja Electric is among six power distribution companies (DisCo) granted approval by the sector regulator to increase tariffs due to the increased cost of gas, rising inflation and generation capacity.

The Nigerian Electricity Regulatory Commission (NERC) in a letter written to the six DisCos and dated December 29, 2021, the new tariff took effect from February 2022.

The DisCo include Ikeja Electric, Port Harcourt Electricity Distribution Company (PHEDC); Jos Electricity Distribution Company (JEDC); Kano Electricity Distribution Company (KEDC); Kaduna Electricity Distribution Company (KEDC); and Ibadan Electricity Distribution Company (IBEDC).

According to the document quoted by a report by The Nation, NERC said some of the indices considered for the tariff increase include gas price, inflation, exchange rate, US inflation rate, and available generation capacity.

The regulator said these indices shall be reviewed every six months to update the tariffs with changes in the indices as applicable in line with the multi-year tariff order (MYTO).

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“This regulatory instrument shall be cited as Multi-Year Tariff Order (MYTO-2022) for Port Harcourt Electricity Distribution Company Plc (PHED)’, reads in part: “Consequently, following the approval of PHED’s PIP on 30th April 2021, the Commission issued the MYTO-2021 Extraordinary Tariff Order effective from 1st July 2021 in consideration on PHED’s CAPEX proposals over a 5-year plan in line with the approved PIP”.

“Accordingly, this MYTO-2022 order restates PHED’s approved 5-year CAPEX and relevant assumptions applied to forecast revenue requirements and applicable tariffs for the period 2021-2026 in line with MYTO Methodology and Regulations Procedure for Electricity Tariff Reviews in the Nigerian Electricity Supply Industry (NESI).”

The document said that for A-Non MD customers who paid N56.16/kWh in January 2022 will now (February to December 2022) pay N60.67/kWh).

Also, B Non-MD customers who paid N56.64/kWh in January 2022 will now pay N59.64/kWh.

It added that E-MD2 customers who paid N50.72/kWh in January 2022 will now (From February 2022) pay N54.22/kWh.

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