By Emman Ovuakporie
ABUJA—SPEAKER of the House of Representatives, Yakubu Dogara, said, yesterday, that there was need for Nigerians to get value from the N123 billion Nigerian Electricity Market Stabilization Fund, NEMSF, provided by the Federal Government as subsidy to operators in the sector.
He stated this at the public hearing held by the House Ad-hoc committee set up to interface with Nigerian Electricity Regulatory Commission, NERC, on the Multi-Year Tariff Order, MYTO.
The speaker explained that the investigative hearing became necessary to critically examine and re-assess all inputs and assumptions in the MYTO system in the electricity industry in Nigeria, and to come up with a draft realistic tariff regime.
Dogara said the motion was in response to public outcry against the current tariff system.
He said: “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.
“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.”