Power Minister Directs NERC to Forestall the Implementation of Duly Performed Review of Tariffs


Thursday, January 07, 2021 / 03:15 PM / By Engr Sale Mamman, Office of the Minister, Power / Header Image Credit: Twitter; @EngrSMamman

Proshare Nigeria Pvt. Ltd.

On the 5th of January, 2021, the Nigerian Electricity Regulatory Commission (NERC) issued a statement regarding erroneous and false reports by print and electronic media that approval had been granted for a 50% increase in tariff. I would like to affirm that these reports are inaccurate and false. It is unfortunate that these reports have led to confusion within the public.


On the contrary, Nigerian Government 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.


Some of the achievements of this deliberation with Labour are the accelerated rollout of the National Mass Metering Plan, clamp downs on estimated billing, improved monitoring of the Service Based Tariff and the reduction in tariff rates for bands A to C in October 2020 (that were funded by a creative use of taxes).


It should be clear to all that the regulator must be allowed to perform its function without undue interference. The role of the Government is not to set tariffs, it is to provide policy guidance and an enabling environment for the regulator to protect consumers and for investors to engage directly with consumers. Bi-Annual Minor reviews to adjust factors such as inflation are part of the process for a sustainable and investable NESI.


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.


This will allow for the outcome of all resolutions from the Committee to be implemented together.


The Administration is committed to creating a sustainable, growing and rules based electricity market for the benefit of all Nigerians.


The Administration and the Ministry of Power will also continue to devise means to provide support for vulnerable Nigerians while ensuring we have a sustainable NESI.


Proshare Nigeria Pvt. Ltd.


About the Author

Engr. Sale Mamman is the Honourable Minister of Power, Federal Republic of Nigeria

Proshare Nigeria Pvt. Ltd.

Related News

  1. NERC Grants No Approval on the Purported 50% Increase in Electricity Tariffs
  2. The Nigerian Power Sector Guide
  3. AfDB Approves $7m in Sustainable Energy Fund for Africa Technical Assistance
  4. Nigeria: From Petrol to Auto-Gas
  5. FG Determined to End Estimated Billing
  6. NERC Affirms Pricing as the Biggest Challenge for Nigeria's Power Sector
  7. Transcorp Acquires Afam Power
  8. No Rapid Growth With these Power Shortages
  9. 5 Major Takeaways from The IEA's World Energy Outlook 2020
  10. A Pathway to Addressing the Power Sector Challenge - PowerUpNG
  11. 33,448,633MWh of Energy Generated in 2019 - NBS
  12. The Stifled Nigerian Consumer
  13. President Buhari Speaks On New Prices For Petrol, Electricity
  14. Sefton Fross to Host Webinar Focused on Improving the Resilience of Oil and Gas Firms
  15. FAQs On Service-Based Tariff - NERC
  16. No Tariff Raise for Poor and Vulnerable Nigerians, NERC Directs DisCos to Embark on Mass Metering
  17. CBN Directs DMB-Led Electricity Market Collections
  18. Power Generation Sinks After New High
  19. Ikeja Electric Launches WhatsApp Chatbot to Optimise Service Delivery, Complaints Resolution
  20. Power: Deal With Siemens - The Birth of a New Era?

Proshare Nigeria Pvt. Ltd.

Proshare Nigeria Pvt. Ltd.

Proshare Nigeria Pvt. Ltd.

Related News