FG Increases Electricity Tariff By 50%

FG Increases Electricity Tariff By 50%

In a surprising development, the Federal Government has again increased the electricity tariff.

The development was revealed by the Nigerian Electricity Regulatory Commission (NERC) in its December 2020 minor review of the Multi-Year Tariff Order and Minimum Remittance Order obtained made available to newsmen in Abuja on Tuesday, January 5, 2021.

According to the NERC in the report, the increase which varies, based on different consumer classes kicked off from January 1, 2021.

Also Read: BREAKING: NERC finally suspends electricity tariff hike

Giving reasons for the development, the commission said it considered the 14.9 percent inflation rate rise in November 2020 and foreign exchange of N379.4/$1 as of December 29, 2020.

The commission noted that the new tariff increase would be in full effect through June 2021 while a Cost Reflective Tariff would be activated from June to December 2021.

Recall that Labour Union and the Federal Government had been at loggerhead following increase in the pump price of premium motor spirit as well as the increase in electricity tariff since September 2020.