Following an
outcry over the decision to increase electricity tariffs in the country, the
Nigerian Government says the implementation will commence in April.
The Chairman
of the Nigeria Electricity Regulatory Commission (NERC), Professor James Momoh,
stated this while addressing a news conference on Monday in Abuja, the nation’s
capital.
On Saturday,
Channels Television reported that NERC has approved the immediate review of
electricity tariffs across the country.
A series of
documents dated December 31, 2019 indicate an increase that ranges from 59.7
per cent to 77.6 per cent.
The increase
affects all categories of electricity consumers, except those classified as
residential (R1) whose N4 per kWh charge was left unchanged.
According to
the documents jointly signed by Professor Momoh and the Commissioner for Legal,
License, and Compliance, Dafe Akpeneye, the NERC said the reviewed tariffs were
effective January 1, 2020.
The
development affects the 11 Distribution Companies (DISCOs) in the country such
as Abuja DISCO, Benin DISCO, Enugu DISCO, and Eko DISCO.
Others are
Ibadan DISCO, Ikeja DISCO, Jos DISCO, Kaduna DISCO, Kano DISCO, Port Harcourt
DISCO, and Yola DISCO.
This sparked
widespread criticism of the government, apparently forcing the NERC to make
further clarification on the controversy.
At Monday’s
press conference, Professor Momoh explained that the review of the Multi-Year
Tariff Order (MYTO) does not mean an immediate increase in tariff for
electricity consumers.
He added
that the commission would engage the public on the planned review in the next
three months, before deciding on any implementation.
The NERC
boss also said the electricity body would begin the regulation of estimated
billing by electricity distribution companies who fail to provide meters for
their customers.
In a bid to
further explain the rationale behind its decision, the regulatory body issued a
statement.
Read the
statement below:
TARIFF
REVIEW CLARIFICATION.
We make this
statement to inform all our esteemed customers that we are not unmindful of
news making the rounds that Electricity tariffs have been increased effective
January 1 2020 as reported in some print and electronic media.
For clarity
and improved understanding, we state the following points:
The Nigerian
Electricity Supply Industry (NESI) is primarily regulated by the Nigeria
Electricity Regulatory Commission (NERC).
NERC is
empowered by the EPSR Act (EPSRA) to make Orders and Declarations in a manner
promoting efficiency and sustainability within the NESI.
NERC is
empowered by EPSRA to carry out minor reviews of the Multi-Year Tariff Order
(MYTO) 2015 (the Electricity Tariff), twice a year.
An accurate
electricity tariff assists greatly in ensuring efficient power supply delivery
from the different stages of the electricity process, from Generation through
Transmission to Distribution, as it assures stakeholders and participants of
their costs recovery and return on investment. This makes the business viable.
NERC has
just reviewed the MYTO 2015 and has published an Order on Tariffs and Minimum
Remittance for Jan-June 2020.
The tariffs
anticipate changes in the currency exchange rates between the United States and
Nigeria, changes in the rate of inflation and Gas prices.
The Tariffs
shall remain the same as they presently are (i.e. 2015 levels) until April 01
2020 when there will be a slight increment to cater to tariff shortfalls which
shall be gradually passed on to the consumer until this is fully completed by
the end of 2021.
In view of
the foregoing, we state emphatically that there shall be no change or increase
in the existing Electricity tariff until April 01 2020 when the new adjusted
tariffs shall begin to gradually reflect the dynamism of our macro-economy.
We sincerely
hope that this statement substantially clarifies the accurate position and
allays any fears and concerns, our esteemed customers may have.
We thank you
for your continuing patronage.
Signed.
ANED
Channelnews
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