New Nigeria’s electricity tariff begins April 2020 — ANED
The Association of Nigerian Electricity Distributors (ANED) has stressed that Nigeria’s new electricity tariff will take effect from April 1, 2020.
The Executive Director of Association of Nigerian Electricity Distributors (ANED), Barrister Sunday Oduntan, stated: “We make this statement to inform all our esteemed customers that we are not unmindful of news making the rounds that Electricity tariffs have been increased effective January 1, 2020 as reported in some print and electronic media.”
He stated: “The Nigerian Electricity Supply Industry (NESI) is primarily regulated by the Nigeria Electricity Regulatory Commission (NERC). NERC is empowered by the EPSR Act (EPSRA) to make Orders and Declarations in a manner promoting efficiency and sustainability within the NESI. NERC is empowered by EPSRA to carry out minor reviews of the Multi-Year Tariff Order (MYTO) 2015 (the Electricity Tariff), twice a year. An accurate Electricity tariff assists greatly in ensuring efficient power supply delivery from the different stages of the electricity process, from generation through transmission to distribution, as it assures stakeholders and participants of their costs recovery and return on investment. This makes the business viable.
“NERC has just reviewed the MYTO 2015 and has published an Order on Tariffs and Minimum Remittance for Jan-June, 2020. The tariffs anticipate changes in the Currency Exchange rates between the United States and Nigeria, changes in the rate of Inflation and Gas prices. The Tariffs shall remain the same as they presently are (i.e. 2015 levels) until April 01, 2020 when there will be a slight increment to cater for tariff shortfalls which shall be gradually passed on to the consumer until this is fully completed by the end of 2021.”
He added: “In view of the foregoing, we state emphatically that there shall be no change or increase in the existing Electricity tariff until April 01, 2020 when the new adjusted tariffs shall begin to gradually reflect the dynamism of our macro-economy. We sincerely hope that this statement substantially clarifies the accurate position and allays any fears and concerns, our esteemed customers may have.”