NERC approves new tariff hike for PHED

The Nigerian Electricity Regulatory Commission has approved a new tariff plan for the Port Harcourt Electricity Distribution Company.

The NERC permitted the PHED to raise tariffs for Band A customers categorised as Maximum Demand 2 Special (A – MD2 Special).

MD customers are customers that have a load of 45kVA and above. They also operate and maintain their dedicated transformers.

From N206 per kilowatt-hour, this category of customers within the Port Harcourt franchise will now pay N225/KWh.

In a regulatory instrument tagged June 2024 Supplementary Order to the Multi-Year Tariff Order – 2024 (“June 2024 Supplementary Order”) for Port Harcourt Electricity Distribution Plc, the NERC said the tariff approval was under the Tariff Review Application by PHED.

“Further to Section 23 of the MYTO-2024, this Supplementary Order seeks to reflect the changes in the pass-through indices outside the control of licensees including inflation rates, naira/dollar exchange rate, available generation capacity and gas price for the determination of Cost-Reflective Tariffs,” the NERC stated.

Emphasising the basis for the review, the regulator stated that the Naira to the US Dollar exchange rate of N1,469.06 per dollar has been adopted for June to December 2024; saying this has been determined by adding a 1 percent transaction cost to the average foreign exchange rate of N1,454.52 during the period May 1 to 24, 2024 as obtained from the website of the Central Bank of Nigeria.

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