The Nigerian Electricity Regulatory Commission, NERC, has suspended the increase in the Multi-Year Tariff Order, MYTO, 2020 for the Electricity Distribution licensees.
The suspension took effect from September 28, 2020, and will become ineffective from October 11, 2020.
The decision to suspend the MYTO followed a joint communique issued by the Federal Government of Nigeria and the labour unions, where the government agreed that the recent review in electricity tariffs would be suspended by the Commission for a period of 14 days to give room for further consultations and finalisation of negotiations between the parties.
According to the NERC, the Commission issued the Multi-Year Tariff Order 2020 for the 11 successor electricity distribution companies, DisCos with effect from September 1, 2020, in pursuant to sections 32 and 76 of the Electric Power Sector Reform Act, EPSRA.
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One of the primary objectives of the MYTO 2020 Order is to ensure that rates charged by DisCos are fair to customers and are sufficient to allow the DisCos efficiently to recover the full cost of their activities, including a reasonable return on the capital invested in the business.
(Editor: Abaje Usekwe)
