BUSINESS No plan to increase electricity tariff - Amadi

Chairman of the Nigerian Electricity Regulatory Commission (NERC), Dr Sam Amadi, has explain the misconception regarding the MultiYear Tariff Order (MYTO), stating that it is a five-year tariff benchmark with no plan to raise tariff outside the arrangement.

The clarification was contained in a recent statement issued by NERC Head, Public Affairs Department Dr. Usman Abba Arabi.

He said Amadi speaking on the backdrop of public outcry on the fixed charges on electricity bills which has prompted some protests amidst low electricity supply.

He said, “When we say that we have not increased tariff, we do not mean that the tariff you paid in 2011 is what you are paying now, rather we mean that the order of the tariff published has not been changed. That is why it is called Multi-Year Tariff Order (MYTO), it simply means that we have benchmarked the cost.”

He further explained that by June first of every year, the tariff changes such that there is a tariff for the next five years. The electricity regulator called for customers’ understanding, stating that Distribution companies (Discos) should not be accused of increasing tariff arbitrarily with regard to the fixed charges since it has been factored into the MYTO tariff plan.

Amadi also appealed to electricity customers to pay their bills promptly and called on those who indulge in electricity theft to desist, warning that Discos had gotten the Commission’s authority to punish anyone caught byepassing meters. He said anyone caught will be made to pay fifty times what was stolen.

NERC’s helmsman also said the Commission expects a robust metering of customers by the Discos, warning that reckless estimated billing must stop. “That someone does not have a meter does not mean that he must be overestimated. Meters must be read and customers charged accordingly,” Amadi warned.