Federal Government has once again increased electricity tariff payable by power consumers across the country.
Approval for the hike in tariff was given by the Nigerian Electricity Regulatory Commission (NERC), as the increase which varies, based on different consumer classes, took effect from January 1, 2020.
NERC announced the tariff hike in its December 2020 minor review of the Multi Year Tariff Order (MYTO) and Minimum Remittance Order (MRO), according to ThePunch.
The MYTO order containing the latest tariff hike, Order NERC/225/2020, was signed by the new Chairman of NERC, Sanusi Garba, and it supersedes the previous Order NERC/2028/2020.
The tariff increase is taking effect just two months after the government through NERC implemented a much opposed hike in November 2020.
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Providing reasons for the latest 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 at December 29, 2020.
Findings showed that the revised Service Based Tariff saw increase in the rates payable by the various classes of electricity users unlike the one of November 2020, that exempted low electricity consumers.
The commission also stated that the new tariff would be effective till June 2021 while a Cost Reflective Tariff would be activated from June to December 2021.
NERC had stated last month that it was carrying out a review for another tariff, hence the latest order announcing an increase in the rates payable by consumers.
It would be recalled that in September last year the commission raised electricity tariff but it was faced with stiff opposition by the organised labour, as the unions threatened to embark on a nationwide strike.
After series of negotiations, the tariff was reduced based on consumer classes and the hours of power supply received by an electricity user.
Read Also: NLC Strike: Labour Calls Off Planned Strike As FG Suspends New Electricity Tariff For Two Weeks
On November 1, 2020, power distribution companies commenced the implementation of the revised electricity tariff that was jointly agreed upon by organised labour and the Federal Government.
However, two months after implementing the revised tariff that saw various levels of increase in rates, the government has now increased the tariff.
