JUST IN: FG Announces Fresh Electricity Tariff Increase

The federal government has approved an increase in the electricity tariff for power distribution companies.

The announcement was contained in the data presented by National Electricity Regulatory Commission in the 2022 Multi-Year Tariff Order for Ikeja Electric, a distribution company covering parts of Lagos and Ogun States.

The upward tariff review is for all customer categories and will be effective from February 2022, spanning through December 2022, according to the document.

While some customers in major demand area were asked to pay N60.12 per kilowatt from N58.59, customers in low demand area have been asked to pay N57.52 per kilowatt from N55.87.

According to NERC, the rise was based on the DisCos’ Performance Improvement Plans and indicators such gas price, inflation, exchange rate, US inflation rate, and available generation capacity.

The electricity tariff was increased for all consumers in June 2021 on a similar premise.

In the 2020 revised Multi Year Tariff Order (MYTO), the NERC had said it considered the 14.9 percent inflation rate rise in November 2020, foreign exchange of N379.4/$1 as of December 29, 2020, available generation capacity, US inflation rate of 1.22 percent and the capital expenditures (CAPEX) of the power firms to raise the tariff.