Despite the approval of a new Extraordinary Tariff Review applications, Performance Improvement Plan (PIP) and Capital Expenditure (CAPEX) for electricity Distribution Companies (DisCos)in Nigeria , the Federal Government has ruled out a siginificant tariff hike in electricity.
The effective date of the PIP and CAPEX is 1st July 2021, while it is to lapse on June 30, 2026,
The Minister of Power, Engr. Sale Mamman said at the weekend that there will be no significant increase in electricity tariff.
In a statement in Abuja he disclosed that ,Instead of a significant hike in electricity tariff, Nigerians should expect increase efficiency in the sector to reduce tariffs while managing headwinds from foreign exchange and inflation.
Mamman said that the order issued by NERC on the 26th of April 2021 titled “Notice of Minor and Extraordinary Review of Tariffs for Electricity Transmission and Distribution Companies” was a routine procedure.
He had made the statement clarification to douse the tension of reports of possible major increase in the price of electricity that has dominated the public space.
According to him, the review planned by NERC is in accordance with Section 76 of the Electric Power Sector Reform Act of 2005.
But the NERC orders issued to the different DisCos on Sunday, they were about applications for extraordinary tariff review, Performance Improvement Plans and capital expenditure for the next five years, beginning from 1st July this year.