Federal Government increases electricity tariff by 50%, to take effect this month

The Federal Government has again increased the electricity tariff payable by power consumers across the country.

Federal Government increases electricity tariff by 50%, to take effect this month

Approval for the hike in tariff was given by the Nigerian Electricity Regulatory Commission, as the increase which varies, based on different consumer classes, took effect from January 1, 2021.

The NERC announced the tariff hike in its December 2020 minor review of the Multi Year Tariff Order and Minimum Remittance Order obtained by our correspondent in Abuja on Tuesday.

The tariff increase is taking effect just two months after the government through NERC implemented a hike in November 2020, which saw widespread opposition.

READ ALSO
China gave warning to US ‘not to play with fire’ on Taiwan

The MYTO order containing the latest tariff hike, Order NERC/225/2020, was signed by the new Chairman of NERC, Sanusi Garba, and it supersedes the previous Order NERC/2028/2020.

Providing reasons for the latest tariff hike, 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.

Others were available generation capacity, United States inflation rate of 1.22 per cent and the Capital Expenditure of the power firms before the tariff was raised.

Findings showed that the revised Service Based Tariff saw increase in the rates payable by the various classes of electricity users unlike the one of November 2020, that exempted low electricity consumers.

READ ALSO
Lady whose sex tape with Nigerian pastor leaked finally speaks (Photos)

The commission 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.

The commission had stated last month that it was carrying out a review for another tariff, hence the latest order announcing an increase in the rates payable by consumers.



Stay Connected , follow us on: Facebook: @creebhillsdotcom, Twitter: @creebhillsblog, Instagram: @creebhills, Pinterest: @creebhills Telegram: creebhills

To place an advert/sponsored post on our site, contact us via [email protected], [email protected]
Previous articleDbanj and his wife Lineo, welcome their newborn daughter home (Photos)
Next articleWizkid’s ‘Made In Lagos’ listed among The Fader ‘50 Best Albums of 2020’
Moses is a young and innovative Pro Blogger, Writer, Content Creator.

LEAVE A REPLY

Please enter your comment!
Please enter your name here