NERC approves another hike in electricity tariff

 

 

.Commends Enugu DisCo

 

The Nigerian Electricity Regulatory Commission (NERC) has approved an increase in electricity tariff for all the seven disCos, namely Port Harcourt Electricity Distribution Company (PHEDC); Jos Electricity Distribution Company (JEDC); Kano Electricity Distribution Company (KEDC); Kaduna Electricity Distribution Company (KEDC); Jos Electricity Distribution Company (JEDC); Ikeja Electricity Distribution Company (IKEDC) and Ibadan Electricity Distribution Company (IBEDC).

 

The new approval took effect from January 1, 2022 but the new rate is from February 2022.

 

According to the document titled: “This regulatory instrument shall be cited as Multi-Year Tariff Order (MYTO-2022) for Port Harcourt Electricity Distribution Company Plc (PHED”) and published by the Nation, NERC based the increase on the Performance Improvement Plans of the DisCos and indices such as gas price, inflation, exchange rate, US inflation rate and available generation capacity.

 

The commission noted that the indices with potential impact of on electricity rates were considered.

 

It added that these indices shall be reviewed in every six months to update the tariffs with changes in the indices as applicable in line with the MYTO.

 

This was contained in the commission’s Order No: NERC/304/2021, which chairman, Sanusi Garba and Vice Chairman Musiliu Oseni signed on 29th December, 2021.

 

The document explained: “Consequently, following the approval of PHED’s PIP on 30th April, 2021, the Commission issued the MYTO-2021 Extraordinary Tariff Order effective from 1st July 2021 in consideration on PHED’s CAPEX proposals over a 5-year plan in line with the approved PIP.

 

“Accordingly, this MYTO-2022 order restates PHED’s approved 5-year CAPEX and relevant assumptions applied to forecast revenue requirements and applicable tariffs for the period 2021-2026 in line with MYTO Methodology and Regulations Procedure for Electricity Tariff Reviews in the Nigerian Electricity Supply Industry (NESI).”

 

It is programmed from 1st July 2021 to 30th June, 2026.

 

The document showed that for the PHED (A-Non MD) customers who paid N56.16/kwh in January 2022 will now (February to December 2022) pay N60.67/kwh).

 

(B Non-MD) customers who paid N56.64/kwh in January 2022, will now pay N59.64/kwh.

 

The noted that E- MD2 customers who paid N50.72/kwh in January 2022, will now (From February 2022) pay N54.22/kwh .

 

Meanwhile, The Nigerian Electricity Regulatory Commission (NERC) has commended the Enugu Electricity Distribution Company PLC (EEDC) for its giant strides and consistent effort towards the actualization of its sustainability and transformation agenda, for greater productivity and efficiency.

 

 

This commendation was made by the Chairman NERC, Engr. Sanusi Garba, when he received the delegation from EEDC, led by its Chairman, Sir (Dr.) Emeka Offor, in company of its Executive Management team during a courtesy call on the Commission yesterday, in Abuja.

 

The NERC Chairman extolled Sir Offor for strengthening the management team of EEDC with the appointment of experienced professionals in the industry.

 

Other members of the EEDC delegation includes, the Managing Director/CEO, Mr. Praveen Chorghade; Executive Director, Business Finance & Administration, Mr. Paul Okeke; Chief Technical Officer, Engr. Vincent Ekwekwu and the Chief Operating Officer, Mr. Maruthi Mallepalli.

 

The team used the opportunity to formally introduce its new Management Executive to the Commission, following the recent appointment by the Board of Directors of Dr. Ernest Raphael Mupwaya as its Executive Director in charge of Technical & Operations.

 

Mupwaya is bringing on board his over 30 years of experience garnered in the Electricity industry, part of which was as the Managing Director, ZESCO, Zambia; Commercial Director, Abuja Electricity Distribution Company (AEDC), where he was later elevated to the position of Managing Director/CEO.

 

He has a Doctorate degree in Business Administration from California Intercontinental University, USA (DBA), a Master’s degree in Business Administration from University of Glamorgan and University of South Wales, United Kingdom, and also a Bachelor’s degree in Electrical Engineering from University of Zambia.