NERC APPROVES TARIFF HIKE FOR DISCOS

The Nigerian Electricity Regulatory Commission (NERC) has approved a tariff increase for the distribution companies. This was made known on yesterday, the 21st of august 2019 through a series of documents tagged ‘The 2016-2018 Minor Review of Multi-Year Tariff Order 2015 and Minimum Remittance Order for the Year 2019’. The government disclosed the cost reflective tariff of each of the Discos in separate documents revealing their different cost reflective tariffs.

NERC said: “The objectives of this order are to reflect the impact of changes in the Minor Review variables for the period 2016 2018 to determine the cost-reflective tariffs for the relevant years; and to ascertain revenue shortfalls in view of the differential between such tariffs and allowed tariffs in the Nigerian Electricity Supply Industry (“NESI”).”

“Determine and recognise the historical (2015 2018) tariff deficits pursuant to the objective of resolving the impairment of the financial records of DisCos arising as a consequence of the deficits. “This order has taken into consideration the actual changes in relevant macroeconomic variables and available generation capacity in updating the operating MYTO 2015 Tariff Order for the period January 1, 2016, to December 31, 2018, in line with the provisions of the MYTO Methodology (Amended). Projections were made for macroeconomic variables for the year 2019 and beyond based on best available information. “The commission shall make necessary adjustments to reflect actual values at the time of the next minor review that will take effect on 1 January 2020.”

Breakdown of the new tariff

DISCO USER END COST-REFLECTIVE TARIFF USER END ALLOWED TARIFF TARIFF INCREASE
2017 2018 2019 2020 2021 2017-2019 2020 2021
AEDC N42.81 N46.44 N52.86 N46.02 N44.29 N32.66 N42.46 N44.21 N9.8/kWh
BEDC N51.37 N54.36 N59.07 N47.61 N43.79 N32.50 N42.25 N43.79 N9.75/kWh
EKDC N39.7 N41.8 N46.1 N39.8 N39.2 N28.3 N36.8 N39.2 N8.5/kWh
EEDC N35.3 N45.9 N41.6 N10.6/kWh
IBEDC N30.6 N39.7 N44.2 N9.1/kWh
IKEDC N27.3 N35.5 N37.1 N8.2/kWh
KADUNA N30.3 N39.3 N41.7 N9/kWh
JOS N33.8 N43.9 N10.1/kWh
KEDCO N30.1 N44.7 N41.8 N14.6/kWh

 

 

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