Reports making the rounds is that there would be an increase in electricity tariff from Wednesday, April 1st 2020 which is caused by shortage in gas production.
The Nigerian Electricity Regulatory Commission (NERC) had earlier disclosed this in its December 2019 Minor Review of Multi -Year Tariff Order 2015 and Minimum Remittance Order for the Year 2020, that the order was issued to reflect the impact of changes in the minor review variables in the determination of cost -reflective tariffs and relevant tariff and market shortfalls for 2019 and 2020.
Fact Checks by The PUNCH on Monday showed that the decision to increase tariff had not yet been suspended despite the lockdown occasioned by the COVID-19 pandemic.
Report obtained that a top source at Ikeja Electric told The PUNCH that the firm had not received any directive from NERC as regards reversal of the plan.
He said, “According to the tariff order for the year, we are supposed to increase on April 1 , 2020. So far, we have not received any directive not to go ahead.”
The commission said that the order also determined the minimum remittances payable by the distribution companies in meeting their market obligations based on the allowed tariffs.
It said, “The Federal Government’s updated Power Sector Recovery Programme does not envisage an immediate increase in end-user tariffs until April 1, 2020, and a transition to full cost reflectivity by end of 2021.
The post Electricity tariff to increase by April 1. appeared first on Welcome to Njay Blog.
source https://njay.com.ng/electricity-tariff-to-increase-by-april-1/
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