Sunday, January 5, 2020 2:34 pm
Nigeria is the only country that defies the law of demand pull inflation! In other words, in elementary economics, the higher or better the supply, the higher the price. In this country, the more hopelessly epileptic the supply of electricity, the more the citizens are made to pay. It is like Solomon’s son, threatening to chastise his subjects with scorpions.
Now Nigerian Electricity Regulatory Commission, NERC, has said that the electricity tariffs being paid by consumers will increase in April this year.
NERC disclosed this in its ‘December 2019 Minor Review of Multi-Year Tariff Order 2015 and Minimum Remittance Order for the Year 2020,’ which, as a medium reported, was dated December 31, 2019.
‘It said the order, effective from January first, 2020, was issued to 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 commission said the order also determined the minimum remittances payable by the Discos in meeting their market obligations based on the allowed tariffs.
It said the Federal Government’s updated Power Sector Recovery Program does not envisage an immediate increase in end-user tariffs until first April 2020 and a transition to full cost reflectivity by end of 2021.
According to NERC, all Discos are obligated to settle their market invoices in full as adjusted and netted off by applicable tariff shortfall.’