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Energy

FG announce extension of suspension of new electricity tariff by 1 week

FG announces the extension of the suspension of the new electricity tariff by another one week.

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FG announce extension of suspension of new electricity tariff by 1 week

The Federal Government has announced the extension of the suspension of the new electricity tariff by another one week to enable the committee to review and work out modalities for the implementation of the agreement reached on electricity tariffs structure.

This disclosure was made by the Executive Chairman, Nigeria Electricity Regulatory Commission (NERC), Prof James Momoh, when the ad hoc Technical Committee on Electricity Tariff submitted its interim report at a reconvene bilateral meeting between Federal Government and Organised Labour on Monday in Abuja.

READ: NERC says Discos will compensate electricity consumers for power delivery failure

Nairametrics had earlier reported that the suspension of the new tariff for two weeks, which ended at midnight on Oct. 11, following the meeting between Federal Government and organized labour after the threat by labour to embark on strike over increase in electricity tariff and petrol pump price.

The committee which was chaired by Minister of State for Labour and Employment, Festus Keyamo, and set up to examine the justifications for the new policy in view of the need for the validation of the basis for the new cost-reflective tariff, agreed that the tariff increase should be suspended for 2 weeks, while the committee deliberates on it.

READ: FG plans to spend N336 million on advocacy against hate speech, rape, others in 2021

The Minister of Labour and Employment, Chris Ngige, while reading a resolution reached between the Federal Government, Organised Labour and the Ad Hoc Technical Committee on Electricity Tariff disclosed that the adoption of the work plan for effecting the resolutions has been reached. He said the resolutions adopted would be implemented by all stakeholders within the week by Sunday, October 18.

Ngige, while disclosing the amendments to the resolutions that were adopted said, “Using of the Nigerian Electricity Supply Industry (NESI) VAT proceeds to provide relief in electricity tariff. This is to leverage on the VAT from the NESI, the increases experienced by customers due to the transition to the Service-Based Tariff will be reduced. That is Band A – 10%, Band B – 10.5 per cent reduction and Band C – 31 reductions.”

READ: Ikeja Electric warns customers not to pay staff for metering

On the acceleration of National Mass Metering Programme (NMMP), he revealed that it was adopted that for the distribution of the first one million meters, the Ministry of Power was to liaise with Central Bank of Nigeria(CBN), Nigerian Electricity Regulatory Commission (NERC) and Nigerian Electricity Management Services Agency (NEMSA). He added that they are to start work by Oct. 12, to accelerate the roll-out of meters with a target of December 2020. The minister, therefore said that the meeting agreed that it would work towards bridging the metering gap.

Ngige also noted that the resolutions adopted for Phase two for the extensive review of key sector reforms include that the ad hoc committee would work from Oct. 12 to Dec. 12, to ensure that all outstanding issues are resolved and implemented.

READ: FG approves the establishment of Shoe, Garment, and Leather processing factories worth N5.08 billion

He also said the resolution adopted on gas pricing was that the Group Managing Director was co-opted into the Technical Committee to assist with the purpose. He added that on resource capacity, the Managing Director, NEMSA is also co-opted into the Technical Committee to work with NERC on the metering assignments.

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Chike Olisah is a graduate of accountancy with over 15 years working experience in the financial service sector. He has worked in research and marketing departments of three top commercial banks. Chike is a senior member of the Nairametrics Editorial Team. You may contact him via his email- [email protected]

2 Comments

2 Comments

  1. Anonymous

    October 12, 2020 at 1:15 pm

    New tariff has been implemented by ikeja disco, my current September bill was charge based on the new tariff of C non MD of #42.73 per unit

  2. Larry E

    October 13, 2020 at 11:41 am

    Phed is still changing the new tariff they have never for one day stopped reaping off the public over this tariffs issue even when they came out and lie to the Nation that they suspend charging the new tariff

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