Press Releases

Media Contacts

Name: Usman Abba Arabi
Email: usman.abbaarabi@nerc.gov.ng

Phone: 09- 462.1408

Name: Samuel Ekeh
Email: samuel.ekeh@nerc.gov.ng 
Phone: 09- 462.1408

Tariff Did Not Increase Due To Inflation

Following a misleading report published in a newspaper on 6th August 2012, the Nigerian Electricity Regulatory Commission wishes to clarify the issues surrounding the electricity tariff.
 
NERC has not changed, or increased tariffs since 2012. Rather, it is the tariffs as published in the 2012 Multi-Year Tariff Order (MYTO) that have come into effect in June 1, 2013. The report wrongly stated that NERC increased tariffs due to increase in the rate of inflation. The reverse is actually the case. The inflation rate in the MYTO has not changed because inflation in Nigeria has remained single digit. NERC could not have increased tariffs due to rate of inflation which has remained stable.

In 2012, NERC published the MYTO – a tariff plan that sets both wholesale and retail tariffs for the industry over a five year period. This means that tariffs have already been set for every year starting 2012 through to 2016. Effective June 1 of every year, a new tariff is to take effect. This will continue till the five-year period of the MYTO has lapsed, after which there will be a major review.

In between the major reviews are bi-annual minor reviews that look out for significant changes in macroeconomic indicators such as interest rate, inflation and exchange rates. These minor reviews do not automatically translate to an increase in tariffs. In fact, if the conditions are right, minor reviews could lead to a decrease in tariffs, if not maintaining the status quo.

So far, NERC has conducted two of such minor reviews, and the outcome of the review exercises have not led to any changes in the published multi-year tariff. The tariff remains the unchanged for now.

For further details, the general public is encouraged to visit our website on www.nercng.org and download the tariff document.


Maryam Yaya Abubakar - Assistant General Manager, Media
email: mabubakar@nercng.org

Search