New power tariff for residential consumers to take effect in June 2015

The Nigerian Electricity Regulatory Commission, NERC has frozen the newly-approved tariff for residential consumers till June 2015.A statement issued on Thursday and signed by NERC’s Head of Media, Mr. Michael Faloseyi, said that the tariff was a review of the Multi Year Tariff Order, MYTO 2, to factor the losses that were now different.
It explained that the new price of gas was usually part of the minor review done every six months and that the review had raised the cost of distributing power supply nationwide by the 11 electricity distribution companies (Discos).
According to the statement, the tariff is expected to affect all electricity consumers.
“But because of the commitment that NERC to ensure that consumers are not further disposed to increased cost until there are improvements in supply, which we expect shortly, we have frozen the increment for six months for Residential consumers (R2).
“We approved an amendment to the MYTO tariff basically which means a new tariff order that continues with the existing framework but now shows a different figure for the remaining five year tariff structure,” it said.
It said with the commencement of MYTO 2.1, NERC would hold electricity distribution, transmission, generation companies and other market operators to the terms and conditions of their licences.
The statement said the measures were being put in place to ensure that the new owners fund their operations and improve electricity supply.
It said the rationale behind the adjustment was to shield ordinary Nigerians from possibility of rates shock that could have accompanied the review.