It is 21 months since the Nigerian Electricity Regulatory Commission (NERC) last reviewed the Multi Year Order (MYTO) but consultations for the review of the MYTO 2015 activated since February 2016 began Wednesday across the geopolitical zones with that of Abuja holding today, Daily Trust reports.
The fourth review is coming when the National Bureau of Statistics (NBS) announced the exit of Nigeria from recession, and an on-going process for payment assurance for Generation Companies (GenCos) to have more liquidity through the Nigerian Bulk Electricity Trading (NBET) Plc so they can pay for more gas and other services and raise generation levels.
The crux of this review is anchored on two strengths: Cutting down the period for the tariff adjustment from six months or semi-annual (twice a year) to quarterly (four times annually), once every month (12 times in a year) or annually (once every year). The second is the traditional review of the tariff based on production indices that include inflation, forex rate (naira to dollar), gas price and electricity generation output.
The consultation continues today in Abuja near the commission’s headquarters and stakeholders are expected to be at the public hearing. From all indications, unless the Federal Government intervenes by way of subsidy or other mechanisms, the current MYTO 2015 may rise significantly when adjusted. If the consultations scale through, the first adjustment of the MYTO 2015 may be likely implemented from January 2018.