The Federal Government says only customers with a guaranteed minimum of 12 hours of electricity can have their tariffs adjusted, under the new electricity tariff arrangement.
This was disclosed in the Joint Press Conference on the recent increase in Petrol and Electricity prices by the Minister of Information & Culture, Alh. Lai Mohammed, Minister of State for Petroleum Resources, Timipre Sylva and Minister of Power, Engr. Sale Mamman.
READ: Power: Nigeria’s deal with Siemens – the birth of a new era?
Happening Now: Joint Press Conference by the Hon. Minister of Information & Culture, Alh. Lai Mohammed, Hon. Min of State, @FMPRng, @HETimipreSylva and Hon. Minister of @PowerMinNigeria @EngrSMamman on the recent increase in Petrol and Electricity prices. pic.twitter.com/gDkekDhPWq
— Fed Min of Info & Cu (@FMICNigeria) September 7, 2020
The Federal Government disclosed that due to issues with Nigeria’s privatized electricity industry, the government had to step in with support, and has spent almost N1.7 trillion through supplementing tariffs shortfalls.
“The government does not have the resources to continue along this path. To borrow just to subsidize generation and distribution, which are both privatized, will be grossly irresponsible,” the government said.
READ: FG approves N3.9 billion variation in housing contracts, Abuja’s dam rehabilitation
ELECTRICITY TARIFF
11. Another issue we want to address here today is the recent service-based electricity tariff adjustment by the Distribution Companies, or DISCOS.
— Fed Min of Info & Cu (@FMICNigeria) September 7, 2020
The Federal Government disclosed that NERC will protect Nigerians who can’t afford to pay cost-reflective tariffs from increases and has approved adjustments to be made only on the basis of guaranteed improvement in service.
“Under this new arrangement, only customers with guaranteed minimum of 12 hours of electricity can have their tariffs adjusted. Those who get less than 12 hours supply will experience no increase. This is the largest group of customers,” it said.
READ: Consortium of Western investors to inject upwards of $5 billion in Nigeria’s renewable energy sector
Under this new arrangement, only customers with guaranteed minimum of 12 hours of electricity can have their tariffs adjusted. Those who get less than 12 hours supply will experience no increase. This is the largest group of customers.
— Fed Min of Info & Cu (@FMICNigeria) September 7, 2020
READ: Lagos to construct rail line to airport terminal for international passengers
The NERC will also enforce a capping regulation to ensure unmetered customers are not charged beyond the metered customers in their neighbourhood, which signifies an end to estimated billings.
Nairametrics had earlier reported the much-anticipated increase of electricity tariff gaining the approval of President Muhammadu Buhari, and said to commence from September 1, 2020. The FG said the review of the service based tariffs was meant to start in July 2020 but was suspended for further studies and proper arrangements in the sector.