Just-in: FG directs NERC to suspend adjusted tariff till end of January


The Federal Government has directed the National Electricity Regulatory Commission (NERC) to forestall the implementation of the duly performed minor review from N2 per kWh to N4 per kWh till the conclusion of the Joint Ad Hoc Committee’s work at the end of January 2021.

This was disclosed by the Minister of Power, Engr. Sale Mamman via his Twitter handle on Thursday.

According to him, the development will give room for the outcome of all resolutions from the Committee to be implemented together.

He tweeted, “To promote a constructive conclusion of the dialogue with the Labour Centers (through the Joint Ad-Hoc Committee), I have directed NERC to forestall the implementation of the duly performed minor review (which adjusted tariffs between N2 per kWh and N4 per kWh) until the conclusion of the Joint Ad Hoc Committee’s work at the end of January 2021.

“Contrary to the allegation that tariff has been increased by 50%, @NigeriaGov continues to fully subsidise 55% of on-grid consumers in bands D and E and maintain the life line tariff for the poor and underprivileged. Those citizens have experienced no changes to tariff rates from what they have paid historically (aside from the recent minor inflation and forex adjustment).

“Partial subsidies were also applied for bands A, B and C in October 2020. These measures are all aimed at cushioning the effects of the pandemic while providing more targeted interventions for citizens.

“The public is aware that FGN and the Labour Centers have been engaged in positive discussions about the electricity sector through a joint ad-hoc Committee led by the Minister of State for Labour and Productivity and Co-Chaired by the Minister of State for Power. Great progress has been made in these deliberations which are set to be concluded at the end of January, 2021.”

What you should know

On Tuesday, Nairametrics reported that NERC issued a public notice explaining the tariff increase.

It stated, “The Commission hereby state unequivocally that NO approval has been granted for a 50% tariff increase in the Tariff Order for electricity distribution companies which took effect on January 1, 2021. On the contrary, the tariff for customers on service bands D & E (customers being served less than an average of 12hrs of supply per day over a period of one month) remains frozen and subsidised in line with the policy direction of the Federal Government.

“In compliance with the provisions of the Electric Power Sector Reform Act (EPRSA) and the nation’s tariff methodology for biannual minor review, the rates for service bands A, B, C, D and E have been adjusted by NGN2.00 to NGN4.00 per kWhr to reflect the partial impact of inflation and movement in foreign exchange rates.”

Source: Nairametrics

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