Olatunde Dodondawa, Lagos
There are strong indications that Nigerians will pay more for electricity from April 2020 following a directive by the Nigerian Electricity Regulatory Commission (NERC) which ordered a tariff review effective to achieve a cost-reflective tariff in the power sector.
According to NERC, effective from January 1, 2020, the tariff will reflect the impact of changes in the minor review variables in the determination of cost-reflective tariffs and relevant tariff and market shortfalls for 2019 and 2020.
“The Federal Government’s updated Power Sector Recovery Program does not envisage an immediate increase in end-user tariffs until 1st April 2020 and a transition to full cost reflectivity by end of 2021.
“In the interim, the Federal Government has committed to funding the revenue gap arising from the difference between cost-reflective tariffs determined by the commission and the actual end-user tariffs payable by customers,” it said.
