NERC To Re-Evaluate Electricity Tariff Plans

The Nigerian Electricity Regulatory Commission (NERC) says they have plans to re-evaluate the model used in determining the amount consumers pay as tariff.

Last week, James Momoh, NERC chairman, was quoted to have said the commission, under his watch, will not adopt the multi-year tariff order (MYTO) software so as to tell if customers are being cheated.

But In a statement on Tuesday, Vivian Mbonu, head of NERC media unit, said the commission will continue to use the MYTO as the framework for determining tariffs while it reviews the financial model.

“NERC hereby reaffirms that there are no plans to dump the MYTO framework used in determining end-user tariffs based on revenue requirement of the electricity industry,” the statement read.

“As part of the periodic evaluation of software models utilized by the commission, NERC plans to review the MYTO financial model to ensure its integrity and consistency of the platform with approved tariff principles pursuant to the numerous updates undertaken since the inception of the methodology in 2008.

“This is an important initiative of the commission as we prepare to commence the review of performance improvement plans to be submitted by utilities for the tariff period 2019- 2023.”