By Francis Ogwo
The new electricity tariff will take effect from the end of this January after the conclusion of talks between the Federal Government and Labour.
This was disclosed by the Minister of Power, Saleh Mamman, on Thursday
According to him, the role of the government is not to set tariffs but to provide policy guidance and an enabling environment for the regulator to protect consumers and for investors to engage with them.
Mamman said: “Bi-annual minor reviews to adjust factors such as inflation are part of the process for a sustainable and investable NESI (Nigerian Electricity Supply Industry).
“To promote a constructive conclusion of the dialogue with the Labour Centres (through the Joint Ad-Hoc Committee), I have directed NERC (Nigerian Electricity Regulatory Commission) 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.
“This will allow for the outcome of all resolutions from the Committee to be implemented together.
“The administration is committed to creating a sustainable, growing and rules-based electricity market for the benefit of all Nigerians.
“The Administration and the Ministry of Power will also continue to devise means to provide support for vulnerable Nigerians while ensuring we have a sustainable NESI.”
Speaking further, Mamman said the Federal Government has been subsidising electricity cost by 55 per cent.
In his words: “I would like to affirm that these reports (about tariff hike) are inaccurate and false. Unfortunately, these reports have led to confusion with the public.
“On the contrary, the government continues to fully subsidise 55 per cent of on-grid consumers in bands D and E and maintain the lifeline 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.”
The Minister further said that some of the achievements of the ongoing negotiations are the accelerated rollout of the National Mass Metering Plan, clampdown on estimated billing, improved monitoring of the Service-Based Tariff and the reduction in tariff rates for bands A to C in October 2020 (“that were funded by the creative use of taxes”).
Mamman was of the view that the role of the regulator must not be interfered with as they perform their duties.
Recall that organised labour had been at loggerheads with the Federal Government on the electricity price hike with many saying the hardship faced by the country was already too heavy to bear and would worsen it.
