A Credible Tariff Framework for the Nigerian Electricity Supply Industry (2016)

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A Credible Tariff Framework for the Nigerian Electricity Supply Industry (2016)

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NIAF was the principal technical partner of the Nigerian Electricity Regulatory Commission (NERC) in developing a new tariff framework that conforms with the new policy directives and regulatory path of the current political administration. The Multi-Year Tariff Order (MYTO) Framework needed to be updated, based on newly developed guidelines. This process required significant interactions with the Discos, Gencos, Transmission Company of Nigeria (TCN) and other Industry stakeholders.

The new MYTO model (2.3) developed with the help of NIAF has been used by NERC to produce 11 Distribution orders and 1 TCN order. The new tariff is designed to protect low-income energy consumers from rate-shock. The R1 lifeline tariff caps the total monthly amount charged. Following the implementation of the new tariff, approx. 230,000 low-income electricity consumers continue to receive power at the affordable rate of Naira 4/KwH- a critical factor in the alleviation of urban poverty.

Source: NIAF Knowledge www.niafng.org

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