Electricity pricing in the NESI: how effective has the MYTO 2015 been?

This paper evaluates the performance of the Multi Year Tariff Order (“MYTO“) for electricity pricing in the Nigerian Electricity Supply Industry (NESI) and particularly the MYTO 2015 across Aggregated Technical Commercial and Collection (ATCC) loss reduction, cost reflectivity and revenue shortfall performance. The approach adopted largely combines the use of economic theory and sampling techniques to explore and represent data made available by relevant agencies within the NESI. The study outcome indicates that the MYTO 2015 between the period 2015 – 2020, showed improvements in ATCC loss reduction and cost reflectivity, however, revenue shortfalls have increased during the same period. owing to a largely unmetered consumer base and poor change management strategies. The outcome of this study is expected to better inform policymakers on the need to curb noticeable shortages and ensure an efficient energy market, worthy of investment.