The Nigerian Electricity Regulatory Commission has announced an immediate a reduction in electricity tariffs by fifty per cent.
The Chairman of the Commission, Sam Amadi, who announced the review in Abuja said the reduction takes effect from the end of March, followed the regulatory agency’s decision to remove collection losses from customer tariff under the multi-year tariff order.
Mr. Amadi said following the approval of the multi-year tariff order, MYTO 2.1 in January 1, 2015, the Commission had received several complaints and petitions against the decision, which resulted in astronomical increases in tariff across the different consumer categories.
He noted particularly the petition by industrial and commercial consumers under the auspices of the Manufacturers Association of Nigeria, which demanded a drastic reduction of their tariffs.
The two categories of consumers had cited the negative impact of their increased tariffs, which they said were threatening their businesses, leading to massive job losses.
Following the review of the petitions, Mr. Amadi said the Commission conducted public hearings to gather evidence from all consumer classes on the affordability of the new tariff.
Again, he said the Commission had consulted with the Chief Executive Officers of the Distribution Companies before deciding to intervene by reviewing the tariffs.
Besides, the Chairman said the Commission also decided to review the technical and financial assumptions of multi-year tariff order 2.1.
The reviews, he noted, were in line with the provisions of the Electricity Power Sector Reform Act 2005 and the Business Rules of the Commission’s mandate, which allow such a decision on a petition by an interested party within 60 days.
He said findings from the various reviews showed that the major cause of the spiralling consumer tariffs was the huge aggregate technical commercial and collection losses.
Source: Premium Times