The new tariff hike takes effect from the 1st of January.
The new tariff is contained in the revised Multi-Year Tariff Order (MYTO) signed by the new Chairman of NERC, Engr. Sanusi Garba dated 30th of December, 2020.
His reasons, is that, the 14.9% inflation rate rise in November 2020, foreign exchange of N379.4/$1 as of December 29, 2020,
Secondly, the available generation capacity, US inflation rate of 1.22% and the Capital Expenditure (CAPEX) of the power firms resulted in the new tariff.
The NERC 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.
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