- Electricity Regulator Suspends Plans to Hike Tariff
The Nigerian Electricity Regulatory Commission (NERC) has suspended plans to hike electricity tariffs on April 1st, 2020.
The commission had on January 4, 2020 agreed to raise the Minor Review of Multi-Year Tariff Order 2015 and Minimum Remittance Order for the Year 2020 on April 1st, 2020.
However, due to the fast-spreading coronavirus, the regulator was forced to suspend the tariff increase to accommodate the current economic challenges.
In a letter issued on Tuesday to power distribution companies, the commission said: “there shall be no increase in tariffs of end-use customers on April 1, 2020.”
It said “the December 2019 Minor Review of Multi-Year Tariff Order 2015 and Minimum Remittance Order for the Year 2020 would remain in force until June 30, 2020 when a new minor review order would be issued by the commission.”
“The Federal Government of Nigeria shall provide tariff support during the transitional period to full revenue recovery ending on June 30, 2021 based on the under-recovery of the revenue requirement determined by the commission,” NERC said.
The commission, however, said the support would be within the context that is available under the Power Sector Recovery Programme Financing Plan.
