Odimmegwa Johnpeter/Abuja
The Nigerian Electricity Regulatory Commission has denied report to dump Multi Year Tariff Order (MYTO) Methodology. This is contained in a statement from the commission which reaffirms that there are no plans to dump the Multi Year Tariff Order (MYTO) framework used in determining end-user tariffs based on revenue requirement of the electricity industry.
It further noted that as part of the periodic evaluation of software models utilized by the Commission, the Commission plans to review the MYTO financial model to ensure its integrity and consistency of the platform with approved tariff principles pursuant to the numerous updates undertaken since inception of the methodology in 2008. The holistic review of the MYTO model also includes aligning the basic assumptions and parameters with the underlying principles of the tariff methodology and ascertaining the full workability of the macros and other formulae. According to the statement, this is an important initiative of the Commission as it prepares to commence review of Performance Improvement Plans (PIP) to be submitted by utilities for the tariff period 2019-2023.
The Commission restated that it will continue to use the MYTO as the framework for determining tariffs, and in line with the provisions of the EPSR Act 2005, ensure that prices charged by licensees are fair to consumers and are sufficient to allow licensees recover the efficient cost of their business activities whilst earning a reasonable return on the capital invested in the business.