Following inaccurate reports recently carried in the media, the Nigerian Electricity Regulatory Commission’s Head, Media Unit-Mrs. Vivian Mbonu, had the following to say:
“The Nigerian Electricity Regulatory Commission (the “Commission”) hereby reaffirms that there are no plans to dump the Multi-Year Tariff Order (MYTO) framework used in determining end-user tariffs based on revenue requirement of the electricity industry. As part of the periodic evaluation of software models utilized by the Commission, the Commission plans to review the MYTO financial model to ensure its integrity and consistency of the platform with approved tariff principles pursuant to the numerous updates undertaken since the inception of the methodology in 2008. The holistic review of the MYTO model also includes aligning the basic assumptions and parameters with the underlying principles of the tariff methodology and ascertaining the full workability of the macros and other formulae. This is an important initiative of the Commission as we prepare to commence the review of Performance Improvement Plans (PIP) to be submitted by utilities for the tariff period 2019-2023.
The Commission will continue to use the MYTO as the framework for determining tariffs, and in line with the provisions of the EPSR Act 2005, ensure that prices charged by licensees are fair to consumers and are sufficient to allow licensees recover the efficient cost of their business activities whilst earning a reasonable return on the capital invested in the business.”