The Nigerian Electricity Regulatory Commission on Monday announced that another tariff review for Nigeria’s 11 power distribution companies would hold in July.
It disclosed this in its notice of Minor and Extraordinary Review of Tariffs for Electricity Transmission and Distribution Companies, a development that might lead to a rise in the tariffs payable by electricity users.
The commission explained that the extraordinary tariff review was as a result of changes in inflation, foreign exchange, gas prices, available generation capacity and capital expenditure.
It said the Multi Year Tariff Order provided for minor reviews in every six months and major reviews in every five years.
The commission, however, stated that extraordinary tariff reviews where done in instances where industry parameters had changed from those used in the operating tariffs to such an extent that a review was urgently required to maintain the viability of the industry.
It said, “Further to the above, the commission held series of public hearings and stakeholder consultations in the first quarter of 2020 on the Extraordinary Tariff Review Applications of the 11 electricity distribution companies to consider their respective five-year Performance Improvement Plans.”