The Federal Government has assured Nigerians that there is no plan to significantly raise electricity tariff.
This was disclosed by the Minister of Power, Sale Mamman, on Friday. The Minister dismissed concerns of a major hike in electricity tariff, as he clarified that there was no plan to significantly raise tariff.
According to the Minister, the clarification came amidst reports of a possible major increase in the tariff payable by electricity consumers nationwide beginning from July this year.
My Fellow Nigerians, There is NO plan to significantly raise Electricity Tariffs!
Instead of significant hike in electricity tariff, Nigerians should expect an increase in efficiency in the sector to reduce tariffs while managing headwinds from foreign exchange and inflation. pic.twitter.com/OD18bqlpn1
— Engr. Sale Mamman (@EngrSMamman) April 30, 2021
He stated, “The order by the Nigerian Electricity Regulatory Commission on April 26, 2021 titled ‘Notice of Minor and Extraordinary Review of Tariffs for Electricity Transmission and Distribution Companies’ was a routine procedure.”
He added the review being planned by the NERC was in accordance with Section 76 of the Electric Power Sector Reform Act of 2005.
“The tariff for customers on service bands D and E (customers being served less than an average of 12 hours of supply per day over a period of one month) remains subsidised in line with the policy direction of the Federal Government,” he said.
What you should know
Section 76 of the Electric Power Sector Reform Act of 2005 provides clear guidelines for the periodic review of tariff based on market data and submissions from licensees.