Electricity Tariff Set To Increase By Over 40% From July 1 – Stakeholders

Electricity Tariff Set To Increase By Over 40% From July 1 - Stakeholders

Opzylee02 June 19, 2023Last Updated: June 19, 2023

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Stakeholders have announced that Nigerians may need to prepare for tougher times as electricity tariff is set to increase by over 40 % in the coming days.

According to reports by the Daily Guardian, this development may eventually lead to an end all forms of energy subsidy in the country.

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With a monthly subsidy of about N50 billion still in the electricity sector owing to revenue shortfall, the tariff hike due from July 1, may be another acid test for the President Bola Ahmed Tinubu administration’s market reform.

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The administration has already removed subsidies on Premium Motor Spirit (PMS)& floated the naira, decisions that have complicated the price-setting of the NERC 2022 Multi-Year Tariff Order (MYTO).

Although the power sector players have been unable to meet the threshold of supplying at least 5,000 megawatts a year after signing contracts with NERC, NERC’s current Service Based Tariff was benchmarked on an exchange rate of N441/$ & inflation of 16.97 %