Executive Chairman of the National Electricity Regulatory Commission, NERC, Dr Sam Amadi, yesterday said that the absence of a cost reflective tariff caused the inability of the power sector to render effective services.
Amadi made the observation in Lagos at a forum of the Nigerian Association of Small and Medium on “Impact of the New Multi- Year Tariff Order (MYTO) on MSME Growth in Nigeria”.
According to Amadi, the necessity for a full and efficient cost recovery measure led to the introduction of the MYTO concept.
“MYTO provides incentives for improving performance. This new tariff framework allocates risks efficiently to those best placed to manage them," he said.
Amadi said that there were positive reasons for the review of electricity tariff.
“The need to provide added incentives in order to attract the private sector gave rise to the increase. We also hope to reduce inefficient consumption and wastage by encouraging more usage of pre-paid metres," he said.
Amadi made the observation in Lagos at a forum of the Nigerian Association of Small and Medium on “Impact of the New Multi- Year Tariff Order (MYTO) on MSME Growth in Nigeria”.
According to Amadi, the necessity for a full and efficient cost recovery measure led to the introduction of the MYTO concept.
“MYTO provides incentives for improving performance. This new tariff framework allocates risks efficiently to those best placed to manage them," he said.
Amadi said that there were positive reasons for the review of electricity tariff.
“The need to provide added incentives in order to attract the private sector gave rise to the increase. We also hope to reduce inefficient consumption and wastage by encouraging more usage of pre-paid metres," he said.
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