On 28 August 2020, the Nigerian Electricity Regulatory Commission (NERC) issued the “Multi Year Tariff Order (MYTO) 2020” (MYTO 2020 or the Order), which marks the commencement of a novel “service reflective” retail tariff regime in the Nigerian Electricity Supply Industry (the NESI). The long awaited MYTO 2020 (which has been due for issuance since April 2020) is an “extraordinary review” of the MYTO 2015 issued in February 2016, which had undergone two (2) “minor reviews” since then (in July and December 2019 respectively). In terms of duration, MYTO 2020 provides that its effective date is 1 September 2020, and that it will subsist until NERC issues a Minor Review Order or an Extraordinary Tariff Review Order.
In keeping with the MYTO Methodology, which prescribes major tariff reviews every five (5) years, MYTO 2020 also acknowledges that NERC will conduct a subsequent major tariff review in December 2020. The issuance of MYTO 2020 has been the source of much debate within the NESI and the general public at large, not least because it introduces a dramatic tariff increment for certain customer classes, among other unprecedented changes to the tariff framework which we discuss in the ensuing paragraphs.