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Nigeria to increase power tariff for bulk consumers
- 14 years ago (2010-05-21)
- David Flin
The Nigerian Electricity Regulatory Commission (NERC) is to review the Multi Year Tariff Order (MYTO) for electricity, particularly for bulk purchasers.
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However, the retail end of the consumers has already been subsidized with N177 billion of subsidies made available by the Nigerian government. Currently, retail consumers should pay N11 per kWh, but only pay N8.5 per kWh under the MYTO subsidy agreement.
The review of MYTO was prompted by the fact that when it first came into being, there were no significant numbers of IPPs in Nigeria, and that much of the data originally used to draw up the MYTO was suspect. Imamudeen Talba, Adminstrator for NERC, said: “Another reason behind the need to carry out the major review ahead of schedule is to incorporate tariff for coal and feed in tariff (FIT) for renewable energy sources. The Commission is concluding work on these tariffs and will organise a final consultation with stakeholders in July 2010 to enable inclusion in the major review.” Talba promised that the exercise would only affect wholesale price and not the retail tariff, and that consumers should not expect any increase in tariff beyond that which was approved in 2008.