The Nigerian Electricity Regulatory Commission (NERC) is awaiting the approval of President Bola Tinubu before a new tariff regime is made public.
The review of the Multi-Year Tariff Order (MYTO), which happens twice a year, is expected to lead to a rate increase following the floating of the national currency.
A source at the Commission said the review has been concluded and the result sent to the President for approval.
Another source, who declined to be named, said that “everything is ready”.
By Friday this week (today), we will know if this increase will happen on July 1 or August 1, as some people have suggested.
“The truth is that the increase will happen, if not the government will have to pay for the shortfall. I don’t think there is a budget for it and without the increase, the industry will struggle to survive”, the source added. Providing more insight, he disclosed that a stakeholder meeting involving the Commission, operators and consumers has been scheduled for Monday and Tuesday next week where all issues arising from the tariff hike will be discussed.
Sources said that President Tinubu’s Special Adviser on Energy, Olu Verheijen, would likely lead the government’s decision on the electricity tariff review and other reforms in the sector.
Last Friday, she met with top government officials at the Federal Ministry of Power in Abuja where she was said to have put forward her vision for the power sector.
Already, some consumers said they would attend the planned stakeholders meeting expected to throw up issues, including the rising cost of operations, inflation and foreign exchange, for discussion.
Meanwhile, the Electricity Distribution Company (DisCos) have argued that the upward tariff review would encourage investment, leading to improved supply to consumers.