Discos, Government, Ministry of Power, NERC, Regulation

Increase in Electricity Tariff Coming

Posted: October 17, 2015 at 10:07 pm   /   by   /   comments (0)

The cost of doing business and general living in Nigeria is likely to increase following the plans of the Federal Government as hinted by the Governor of the Nigerian Central Bank, Mr Godwin Emefiele and the pronouncements coming from the Chairman of the Nigerian Electricity Regulatory Commission, Dr Sam Amadi.

The Governor of the Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, spoke at a press conference in Lima, Peru, at the just concluded annual meetings of the World Bank and the International Monetary Fund (IMF), that the N20 paid by Nigerians per kilowatt of electricity was not cost-reflective. He even compared the weighted average of N20 paid by customers with about N80 they spend generating same unit of power using alternative sources.

Emefiele promised that the apex bank would soon resume disbursement of its intervention fund put in place to assist agencies in the power sector after resolving outstanding issues with the Nigeria Electricity Regulatory Commission (NERC) and the Nigeria Bulk Electricity Trading Plc (NBET).

Dr Amadi whose commission conducted the last of the series of public consultations on the need to review the current tariff regime to make them credible and cost reflective said the process would be completed by October end.

According to him the public consultation held in NERC Corporate Headquarters in Abuja was for the commission to present to the general public the submissions from all the Distribution Companies which indicated varying degrees of increment on the actual energy charge component and reduced or zero recommendation for fixed charge component.

The next step would be for the internal tariff review team in NERC to study the various proposals and make recommendations to the NERC management for approval which will then be done by end of October.

From all indications the tariff increase is a fait accompli, only waiting for time to manifest.

However the good news for electricity customers and industrialists is that tariffs would begin to come down with time when power supply availability increases and discos improve on their service delivery to more captured customers in their networks.

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