By Chineme Okafor in Abuja
The Nigeria Electricity Regulatory Commission (NERC) has disclosed that it is considering a major adjustment in the calculation of electricity tariff to be paid by consumers in the countryâ€™s electricity sector.
NERC in a consultation paper on the review of the Multi Year Tariff Order (MYTO), which it released in Abuja Wednesday, stated that it was looking to introduce a flexible electricity tariff review, one that would see tariffs reviewed either on a monthly or quarterly basis to reflect periodic changes in the countryâ€™s economy.
The MYTO is the sectorâ€™s guiding document for determining the tariff charged to consumers by electricity distribution companies (Discos). It is often reviewed annually and bi-annually by the regulator, wherein changes in fundamental aspects of the industryâ€™s business like foreign exchange, inflation rates, gas prices and capacity generation, amongst others, are captured and inputted in the tariffs of the Discos to their customers.
But the commission in the consultation paper stated that it was proposing changes in this, and thus requested stakeholders to respond to this.
Backing its proposal, NERC said in the consultation paper: â€œSince the commencement of the Transitional Electricity Market (TEM) in February 2015 and corresponding application of contract terms in market settlement/invoicing in the NESI, these concerns have become more pronounced.â€