The Federal Government has again increased the electricity tariff that power consumers across the country are expected to be paying.
The new hike in the electricity tariff was approved by the Nigerian Electricity Regulatory Commission (NERC). The increase varies. It was based on different consumer classes and took effect from January 1, 2021.
The tariff hike was announced by the NERC in its December 2020 minor review of the Multi-Year Tariff Order (MYTO) and Minimum Remittance Order released to journalists on Tuesday.
The tariff is taking place just two months after the Federal Government through the NERC implemented a hike in November 2020, which was followed by widespread opposition.
The MYTO order contained the latest tariff hike, Order NERC/225/2020, was signed by the new chairman of NERC, Sanusi Garba, and it superseded the previous Order NERC/2028/2020.
In its justification for the new tariff hike, the commission said it considered the 14.9 per cent inflation rate rise in November 2020 and foreign exchange of N379.4/$1 as of December 29, 2020.
Other justifications were available generation capacity, the United States inflation rate of 1.22 per cent and the Capital Expenditure of the power firms before the tariff was raised.
Findings revealed that the revised Service-Based Tariff saw an increase in the rates payable by the various classes of electricity users unlike the one of November 2020, which exempted low electricity consumers.
The commission also added that the new tariff would be effective till June 2021 while a Cost Reflective Tariff would be activated from June to December 2021.
Last month, the commission stated that it was carrying out a review for another tariff, thus, the new order announced an increase in the payable rates by consumers.
in September last year, the commission increased electricity tariff but was welcome with strong criticism and protest by the organized labor, as the union threatened to embark on a nationwide strike.
After series of negotiations between the Nigerian Labour Congress (NLC) and the FG, the tariff was reduced based on consumer classes and the hours of power supply each electricity user received.
On November 1, 2020, the power distribution company commence commenced the implementation of the revised electricity that was jointly agreed upon by organized labor and the Federal Government.
The NLC had told journalists that the Federal Government would not revert to the September 1, 2020 service reflective tariff which led to a widespread outcry across the country.
The NLC Deputy President who doubled as the General Secretary of National Union of Electricity Employee, Joe Ajaero, said that the September 1, 2020 hike in electricity tariff had been reviewed downward in most categories.
But two months after the implementation of the revised tariff that saw various levels of increase in rates, the government has increased the electricity tariff again.
