Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.


NERC increases electricity tariff, retains N750 fixed charge

27 May 2014, 09:05

Abuja - The Nigerian Electricity Regulatory Commission (NERC) on Monday announced an increase in electricity tariff by between N1 and N5.

NERC Chairman, Dr Sam Amadi, told a news conference in Abuja said that the new tariff would take effect from June 1 as provided for in the Multi-Year Tariff Order (MYTO).

He said with the review, most electricity distribution companies (DISCOs) will retain the N750 fixed charge.

He said that the MYTO provides for bi-annual reviews that take effect on June 1 and Dec. 1 to ensure that some critical and financial variables underlying electricity tariff in Nigeria were realistic, fair and current.

Amadi said the variables that determined the methodical reviews included rate of inflation, exchange rate, gas price and available power generation capacity in the country.

Amadi also said that the new tariffs would not be equally served to consumers nationwide.

He said some parts of the country would have reduced tariffs and others with slight increase based on the population covered by each DISCO, amount of electricity allocated and facility available to each DISCO.

The NERC boss said that the review indicated a reduction of the wholesale tariff that would be paid to electricity generating companies (GENCOS) from June 1.

He also noted that the cost of the energy charge would have been much higher but for the good macroeconomics management that produced a real reduction in wholesale generation tariffs.

He said that if the review had not been carried out, the fixed charge would have increased from the current N750 to about N1 500.

The NERC boss said that the three components that made up the total tariff paid by consumers included the generation, transmission and distribution.

He decried the gas challenge to the power plants and said that the fixed costs incurred in the three components earlier mentioned would be spread over a much lower quantity of energy projected to be sold to consumers.

Amadi said NERC would continue to ensure that electricity consumers had access to adequate and reliable electricity and put in place mechanisms for improved service delivery from the new electricity companies

-    NAN

For the latest on national news, politics, sport, entertainment and more follow us on Twitter and like our Facebook page.


Read News24’s Comments Policy

Comment on this story
Comments have been closed for this article.

Read more from our Users

Nigeria @ 56: Words to my green f...

A leader’s job is not to dictate, but rather to be respected, admired and be a trustee, of the land we love, with so much potential, a land which should be freer than free. Its still a long way to fufilling our destiny! Read more...

Submitted by
Isaac Asabor263
Recession: An opportunity for Nig...

The recession should be seen as an opportunity for the country’s promotion as long as we all collectively conduct ourselves in a patriotic manner, writes Isaac Asabor.  Read more...

Submitted by
Black and White

We want to imitate the whites in everything because we are ignorant of our inherent originality and content. We spend all our Naira to acquire his inventions because we so oblivious of our natural endowments that we allow him have it for free. Read more...

Submitted by
Nate Nat
Adamawa State University Mubi: A ...

ADSU integrity forum has accused the Sunday Joshua Wugira, a lawyer, of adopting unorthodox tactics by abusing his privilege by attacking the integrity of ADSU Vice Chancellor Dr. Moses Zira Zaruwa, writes a News24 reader. Read more...

Submitted by
Abdulsalam Jubril
My Country Nigeria (Part One)

Poetry by Abdulsalam Jubril.

Submitted by
Abdulsalam Jubril
Recession, dearth in leadership a...

Every leader has the opportunity to become great and making himself immortal in the lives and hearts of people for generations to come. Will Mr. President seize this opportunity?, questions Abdulsalam Jubril. Read more...