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.

What this means: Electricity tariffs will now revert to what it was in November 2020, following the agreement between Labour and the FG to increase the tariff (but still retain some subsidy), until the conclusion of the committee set up to look into tariff issues. Your electricity bill for the month of January will be based on the tariff you used when you paid your bill in December (if you are a postpaid user or estimated billing) and November and December if you are a prepaid electricity user.

Minister of Power

According to Sale Mamman,  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.”

MY STATEMENT ON THE FALSE CLAIM OF 50% INCREASE IN TARIFF.

On the 5th of January, 2021, the Nigerian Electricity Regulatory Commission (@NERCNG) issued a statement regarding erroneous and false reports by print and electronic media that approval had been granted for a 50% pic.twitter.com/lZBU1tmki9

— Engr. Sale Mamman (@EngrSMamman) January 7, 2021

What you should know

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

• NERC had confirmed that though tariff was increased, it is not a 50% hike as stated by some news sites.
• Nairametrics explained that the tariff high is on average 75% from pre-September (MYTO 2020) levels before the initial September 1 tariff order and revised October tariff order based on the agreement with Labour.
• However, it appears some news sites misconstrued this as a 50% hike from the tariffs agreed with labour in October 2020.
• From the release of this order, customers were meant to pay higher electricity tariffs in the region of N2 to N4 per kilowatt-hour.
• However, this increase has now been suspended following the tweet from the Minister of Power.