The chief executive officer of Benin Distribution Company, BEDC, Funke Osibodu has said that electricity tariff increase is inevitable and Nigerians should expect an adjustment which will come at any time.
The present tariff structure she argued is not sufficient to support commercial operations of distribution companies and therefore not sustainable.
She said implementation of the Multi Year Tariff Order, MYTO, is key to promoting quality services and efficiency in the system.
The MYTO is a tariff system designed for the Nigerian Electricity Market to provide a unified way to determine efficient total industry revenue requirement, and provide a 15 year tariff path in the power sector with minor reviews each year due to certain factors such as gas prices, exchange rate and inflation, and major reviews every five years, when all inputs are discussed with stakeholders.
Also, the MYTO is used to set wholesale and retail prices in the Nigerian Electricity Market and on the 18th December 2015, the Nigerian Electricity Regulatory Commission, NERC, set a new tariff for DISCOs for 2015-2024, which requires consumers in different categories and location to pay different charges for each.