The Nigerian Electricity Regulatory Commission has explained why the Federal Government increased the electricity tariff.
In an interview with channels, the Vice Chairman for NERC, Musiliu Oseni stated that the electricity Act mandates the commission that the licensing operating are allowed to recover sufficient revenue for capital investment and operational cost and have return on investment they have made.
”Section 116 subsection 2A of the electricity act, it mandates the commission that the licensing operating are allowed to recover sufficient revenue for the capital invested and the operational cost as well as having a return on the investment they have made”
January up-to-date, there has been low generation availability a lack of review of tariff causes this, the Disco cannot be mandated to pay for what they have not been allowed to charge, and in that case, the payment to generation companies has significantly dropped which as affected them in maintenance of their machine and also to pay for gas.