The Nigerian Electricity Regulatory Commission, NERC on Monday said has commenced minor tariff reviews for the eleven Distribution Companies, DisCos which would be implemented in July 2021.
The Commission made the announcement in a document titled ‘Notice of Minor and Extraordinary Review of Tariffs for Electricity, Transmission and Distribution Companies’ released this week.
According to the document, the Commission said it had held a series of public hearings and stakeholders consultative forums in the first quarter of 2020 following applications filed by the DisCos asking that it considers their respective 5-year performance Improvement Plans, PIPS.
It explained that the processes for the July 2021 minor review of MYTO – 2020 would consider changes in inflation, foreign exchange, gas prices, and available generation capacity.
It would also put into consideration the CAPEX required to evacuate and distribute the said available generation capacity in accordance with the Electric Power Sector Reform Act, EPSRA, and other industry rules, which could lead to an increase in electricity tariffs.
The Multi-Year Tariff Order, MYTO provides for minor reviews every 6 months, major reviews every 5 years, and extraordinary tariff reviews in instances where industry parameters have changed from those used in the operating tariffs to such an extent that a review is urgently required to maintain the viability of the industry.