FG Directs Reversal Of Electricity Tariff

The Minister of Power, Mr Saleh Mamman, has directed the
Nigerian Electricity Regulatory Commission (NERC) to inform all
Electricity Distribution Companies(DISCOs) to revert to tariffs
that were applicable in Dec. 2020.

Mr Aaron Artimas, Senior Special Adviser, Media and
Communications to the Minister of Power, made this known in a
statement in Abuja on Thursday.

He said that the reversal to the old tariff was to promote a
constructive conclusion of the dialogue with the Labour Centres
(through the Joint Ad-Hoc Committee).

“I have directed NERC to inform all DISCOs that they should
revert to the tariffs that were applicable in December 2020 until
the end of January 2021 when the FGN and Labour committee work will
be concluded.

“This will allow for the outcome of all resolutions from the
Committee to be implemented together,” he said.

‘False claim’

The minister spoke against the backdrop of the report that
electricity tariff had been increased by 50 per cent.

“I would like to affirm that these reports are inaccurate and
false.

“It is unfortunate that these reports have led to confusion with
the public.

“On the contrary, 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,” he said.

This may not be entirely true as all consumers, who spoke to
Daily Trust, said they have experienced a significant hike in
tariff in their recent recharge. Some noticed over 50 percent hike
in the electricity tariff.

Mamman claim that the public was aware that the Federal
Government and the Labour Centres had been engaged in positive
discussions about the electricity sector through a Joint Ad-hoc
Committee.

He said that the committee was led by Mr Festus Keyamo, Minister
of State for Labour and Productivity and Co-Chaired by the Minister
of State for Power, Mr Goddy Jedy-Agba.

According to him, progress has been made in these deliberations
which are set to be concluded at the end of January.

“Some of the achievements of this deliberation with Labour are
the accelerated rollout of the National Mass Metering Plan and
clamp downs 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 a creative use of taxes),” he said.

The minister stated that it should be cleared that the regulator
must be allowed to perform its function without undue
interference.

He said that the role of the Government was not to set tariffs,
but to provide policy guidance and an enabling environment for the
regulator to protect consumers and for investors to engage directly
with consumers.

According to him, Bi-Annual Minor reviews to adjust factors such
as inflation are part of the process for a sustainable and
investable Nigeria Electricity Supply Industry (NESI)

He also stated that the regulator must be commended for
implementing the subsisting regulations while putting in place
extensive actions to minimise the adverse impact on end user
tariffs.

“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,” he said.

The Minister of Power, Mr Saleh Mamman, has directed the
Nigerian Electricity Regulatory Commission (NERC) to inform all
Electricity Distribution Companies(DISCOs) to revert to tariffs
that were applicable in Dec. 2020.

Mr Aaron Artimas, Senior Special Adviser, Media and
Communications to the Minister of Power, made this known in a
statement in Abuja on Thursday.

He said that the reversal to the old tariff was to promote a
constructive conclusion of the dialogue with the Labour Centres
(through the Joint Ad-Hoc Committee).

“I have directed NERC to inform all DISCOs that they should
revert to the tariffs that were applicable in December 2020 until
the end of January 2021 when the FGN and Labour committee work will
be concluded.

“This will allow for the outcome of all resolutions from the
Committee to be implemented together,” he said.

‘False claim’

The minister spoke against the backdrop of the report that
electricity tariff had been increased by 50 per cent.

“I would like to affirm that these reports are inaccurate and
false.

“It is unfortunate that these reports have led to confusion with
the public.

“On the contrary, 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,” he said.

This may not be entirely true as all consumers, who spoke to
Daily Trust, said they have experienced a significant hike in
tariff in their recent recharge. Some noticed over 50 percent hike
in the electricity tariff.

Mamman claim that the public was aware that the Federal
Government and the Labour Centres had been engaged in positive
discussions about the electricity sector through a Joint Ad-hoc
Committee.

He said that the committee was led by Mr Festus Keyamo, Minister
of State for Labour and Productivity and Co-Chaired by the Minister
of State for Power, Mr Goddy Jedy-Agba.

According to him, progress has been made in these deliberations
which are set to be concluded at the end of January.

“Some of the achievements of this deliberation with Labour are
the accelerated rollout of the National Mass Metering Plan and
clamp downs 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 a creative use of taxes),” he said.

The minister stated that it should be cleared that the regulator
must be allowed to perform its function without undue
interference.

He said that the role of the Government was not to set tariffs,
but to provide policy guidance and an enabling environment for the
regulator to protect consumers and for investors to engage directly
with consumers.

According to him, Bi-Annual Minor reviews to adjust factors such
as inflation are part of the process for a sustainable and
investable Nigeria Electricity Supply Industry (NESI)

He also stated that the regulator must be commended for
implementing the subsisting regulations while putting in place
extensive actions to minimise the adverse impact on end user
tariffs.

“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,” he said.