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The Nigeria Electricity Regulatory Commission (NERC) has released new guidelines on electricity price hiking.
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The guide is based on the 2023 Electricity Act, which requires operators to ensure that power companies can pay their costs and earn fair profits.
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The guideline provides for a major review of electricity bills every five years.
The Nigeria Electricity Regulatory Commission (NERC) has developed new guidelines for electricity price hiking in the country’s electricity supply industry.
According to NERC’s Sanusi Garba, the guide is based on the 2023 Electricity Act, which requires operators to ensure that power companies can pay reasonable costs, earn enough money to keep their operations and make fair profits for their investments.
Section 116(1) of the Act stipulates that activities in power generation, transmission, distribution, trade, supply, system operations and electricity distribution franchise shall be subject to tariff regulations.
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The guidelines provide for a significant review of electricity bills every five years, during which all relevant tax assumptions are reviewed to ensure the viability and efficiency of the industry.
“When the powers granted in Article 116 of the Act, the Commission has developed and adopted a multi-year tariff order approach as an incentive-based price regulation framework to determine and predict tariffs to the Nigerian power supply industry, the Guidelines state.
NERC refuses to approve 50% electricity price increase
The Nigerian Electricity Regulatory Commission (NERC) denied claims that there has been a 50% increase in new electricity prices.
NERC said in a statement released through its official Twitter account that it has not yet approved a 50% increase in tariffs on electricity distribution companies, which went into effect on January 1, 2021.
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