The Nigerian Electricity Regulatory Commission (NERC) has approved an upward tariff review for the Ibadan Electricity Distribution Company (IBEDC).
A careful study of the tariff order shows that the power distributor has to operate the previous tariff of 1st September, 2020 till June 2021.
Although the new commission’s order NERC/2028/2020, which disclosed this in its revised Multi Year Tariff Order (MYTO) minor review, said the tariff takes effect from January 1, 2021, IBEC, which The Nation sighted on Tuesday, shows that increase will begin in July 2021 as the rates remain unchanged from January to June 2021.
Besides, the company said from the band A, the None Maximum Demand customers that are N62.33 per kilowatt till June 2021 will from July 2021 pay N68.83 per kilowatt.
Meanwhile, in the same band A category, Maximum Demand customers that are now paying N61.54 per kilowatt will pay N63.79 per kilowatt.
For the band B, Non Maximum Demand customers who pay N58.39 per kilowatt till June 2021 will pay N65.71 from rom July 2021. The Maximum Demand customers in the same band B that are now paying N57.33 per unit will pay NN64.52 by July 1, 2020.
NERC said “This order supersedes ORDER/NERC/202B/2020 and shall take effect from 1st January, 2020 and shall cease to have effect on the issuance of a new Minor Tariff Order or Extraordinary Tariff Review Order by the NERC.”
Dated 30th December, 2020 and signed by the Acting chairman, Sanusi Garba, the order noted that the new rate shall remain effective from January 1, 2021, until another minor review is announced.
On Minimum Remittance Threshold for January to June 2021, the commission explained that “The Power Sector Recovery Plan (PSRP) provides for a gradual transition to cost-effective tariffs with safeguards for the less privileged customers in the society.
“The Federal Government, under the PRSP Financing Plan, has committed fund the revenue gap arising from the difference between cost reflective determined by the commission and the actual end-user tariffs during the transition to cost-effective tariffs.”
The new order, according to him, now supersedes the previous one: NERC/2028/2020 that was effective in November last year after suspending it in September due to uprising go the organized labour.
According to the commission, the hike is based on the 14.9 per cent inflation rate in November last year and the foreign exchange rate of N379.4/dollar of 29th December, 2020. It also predicated it on the US inflation rate of 1.22 percent and the Capital Expenditure of companies.
Till press time, NERC had not posted any tariff from any of the 11 electricity distribution companies in accordance with its tradition.