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.

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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.

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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.”

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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.

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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.