A new Multi Year Tariff Order (MYTO) 2 regime has been approved for the electricity sector by the Nigerian Electricity Regulatory Commission (NERC), weeks after it denied that electricity tariff has been jacked up.
NERC in a statement on Wednesday in Abuja said the review will have an implication for takeoff date for a disciplined electricity market by January 1, 2015.
“With the commencement of MYTO 2.1, the Commission will now progressively hold electricity distribution, transmission, generation companies as well as other market operators to the terms and conditions of their licences”, NERC said.
NERC’s Chairman, Dr. Sam Amadi was quoted as saying: “It is expected that the take-off of MYTO 2.1 will bring about improved service delivery as distribution companies are now expected to implement their investment plans for metering and strengthen their networks in line with their bid documents.”
He noted that the adjustment in methodology is not expected to bring about any increase in tariff to the residential customers on R1 and R2, who formed majority of electricity consumers, at least not in the next six months.
Explaining the rationale behind the adjustment, Amadi said that the “Commission had shielded ordinary Nigerians from possibility of rates shock that could have accompanied the review while pressing the operators for improved service delivery and to abide by the agreement they signed into while acquiring the electricity entities”.
Amadi explained further that the review was imperative on account of possible take off date of January 1, 2015 for the transition electricity market and the memorandum of understanding between the Central Bank of Nigeria (CBN) and the Nigerian Electricity Supply Industry (NESI).
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