NERC, Discos to secure presidential buy-in over proposed new electricity tariff structure
THE Nigerian Electricity Regulatory Commission (NERC) and operators in the electricity power sector, including the distribution companies, generators and the Transmission Company of Nigeria (TCN) have adopted a new model for tariff adjustment considerations in the future.
NERC and the operators of the power sector are expected to present the final model to the Presidency to secure government’s s buy-in before it becomes operational.
The Multi Year Tariff Order (MYTO) methodology provides that minor review be carried out to incorporate changes in inflation rate, foreign exchange rate, gas pricing and generation capacity.
At a consultation on the semi-annual minor review of MYTO-2.1 held in Abuja, yesterday, NERC Chairman, Dr. Sam Amadi stressed that the relevant data had been generated from the Nigerian National Petroleum Corporation (NNPC), the National Bureau of Statistics (NBS), the Central Bank of Nigeria (CBN) and relevant data generating bodies and a model future tariff adjustment has been agreed.
The template, Amadi said, would be adopted by now be available to Discos as they consult with consumers for any tariff consultation.
Amadi noted: “The methodology, which is very scientific, requires that every six months we do a review and see what is happening. Now, we have finished the computation of these data and in our open, transparent system, we are bringing it for consumer groups and stakeholders to work through the fundamentals of the data and then show where the conclusions are taking us to.
“Bear in mind that some of this data is taken from official custody, the Central Bank of Nigeria, the National Bureau of Statistics and the Nigerian National Petroleum Corporation. Tariffs are set in an open and transparent system, and we follow where the model is.”