The commission said the MYTO provides for bi-annual reviews that take effect on 1 June and 1 December to ensure that some critical and financial variables underlying electricity tariff in Nigeria are still realistic and current.
NERC chairman Sam Amadi said the variables are the rate of inflation, the exchange rate, gas price and available generation capacity.
"To ensure that the Nigerian electricity market remains financially viable and able to attract investment to improve capacity and reliability, electricity prices are indexed to changes in variables," Amadi said.
Amadi noted that the result of the review indicated a reduction of the wholesale tariff that would be paid to Electricity Generation Companies (GENCOs) from 1 June 2014.
The capacity from the grid as of 31 March review date was 4,306MW, which was well below 9,061MW that the commission had projected when MYTO2 was set in June 2012.
