Even with N123 billion Nigerian Electricity Market Stabilization Fund (NEMSF) provided by the Federal Government as a subsidy to operators in the industry, indications have emerged that the tariff paid by households for power rose to 145 percent in ten years.
Speaker of the House of Representatives, Yakubu Dogara, made this known during an investigative hearing by the House Ad-hoc committee set up to interface with the Nigerian Electricity Regulatory Commission (NERC) on the Multi-Year Tariff Order (MYTO).
He explained that the investigative hearing became necessary with the view to critically examine and re-assess all inputs and assumptions in the Multi-Year Tariff-Order (MYTO) system in our electricity industry in Nigeria, and to come up with a draft realistic tariff regime.
"However, there has been a prolonged public outcry over the continuous increase in the unit price of electricity, which many believe is not in tandem with the current realities in electricity supply. The tariff has continued to increase from an average of N10 per kw/h in 2007 to an average of N24.20 kw/h in 2017 without substantial improvement in power supply.
According to him, the motion was in response to public outcry against the current tariff system.
"I wish to note that the Multi-Year Tariff Order (MYTO) methodology was designed to provide correct pricing of electricity, taking into consideration the key principles of cost reflectivity, affordability, incentives for efficient operations and other assumptions such as price escalators, model building blocks/parameters, etc.
Courtesy: All Africa
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