The Nigerian Electricity Regulatory Commission has started its Multi-Year Tariff Order (MYTO) II on 1 June 2012. This scheme, which sets three separate Tariff Orders respectively for the generation, transmission and distribution businesses, will be effective until 31st May 2017. It aims at attracting private investments and will lead to an average increase in electricity price of 11%.
Under the new tariff regime, different classes of consumers will pay different rates applicable to their classes for their electricity supply. Moreover, NGN50bn (around $310m) will be provided for two years to cover subsidy for poor urban and rural dwellers. Within 12 to 16 months of the coming into effect of the tariff, free meters would be provided for every household while estimated billing system will be standardised instead of using offhand billing method and at the same time providing access to energy bulbs that will reduce cost of consumption by 40%.