The Nigerian Electricity Regulatory Commission (NERC) has released a new Multi Year Tariff Order (MYTO) stating new guideline for tariff.
Platforms Africa, which reported this earlier on Thursday, observed misrepresentation in reports on the MYTO while many Nigerians seek proper understanding of what this means to their daily power transactions with DisCos.
Though the latest Multi Year Tariff Order (MYTO) issued by the commission approved a hike in the tariffs upto 35 per cent for DisCos effective 1st of January 2024, it stated clearly that the burden would be shouldered by the government through an increase in subsidy payable on electricity.
Here are Six Things To Know About New Electricity Tariff
The new MYTO has elicited reactions from customer groups and stakeholders. Here are six things to know about the new tariff order.
1. No customers should entertain an increase in his or her bill as the tariff should remain at the rates of 2022.
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2. Contrary to reports that the NERC has approved an increase in tariffs not payable by customers, the new order it is a recognition of what is cost-reflective.
3. But also that FGN is subsidising, and therefore, tariffs remain frozen for customers.
4. The allowable tariff still remains the same for 2023 and 2024. No increase.
5. The subsidy has increased since the tariff didn’t change despite the increase in cost.
6. In all, the DisCos will have to smile to the bank as they get more money from government as subsidy.
Platforms Africa
