Federal Government Increases Electricity Bill By Over 50%
Federal Government of Nigeria has yet again approved an increase in electricity tariff payable by electricity consumers in Nigeria.
Even as Nigerians are yet to come to terms with the last increase in electricity tariff, the Nigerian Electricity Regulatory Commission (NERC) has enforced a new Multi Year Tariff Order (MYTO), increasing electricity bill by over 50 per cent across the country effective January 1, 2021.
In the new order, NERC said it considered the “…14.9% inflation rate rise in November 2020, foreign exchange of N379.4/$1 as of December 29, 2020, available generation capacity, US inflation rate of 1.22% and the Capital Expenditure (CAPEX) of the power firms to raise the tariff…”
Unlike the earstwhile order implemented in 2020, which exempted low power consumers, the revised Service Based Tariff (SBT) also saw increase in the rates payable by all classes of electricity users.
The order is effective till June 2021 while a Cost Reflective Tariff (CRT) expected to raise the new cost higher will be activated from June to December 2021.