The Nigerian Electricity Commission (NERC), has suspended it’s plan to increase electricity tariffs, effective from Wednesday April 1, 2020.
“There shall be no increase in tariff of end – use customers on April 1, 2020″. The commission,took to its twitter page to make this announcement on Tuesday.
The commission, instead, asked operators in the power sector, including electricity generation and distribution companies, to submit a performance improvement Plan (PIP). The Performance Improvement Plan (PIP), is to commit the operations to a higher quality of service.
NERC, on December 31, 2019, announced its plans to immediately review electricity tariffs in the country from January 1, 2020. On January 4, 2020, the commission said that consumers will start to pay more for electricity from April 1, 2020.
NERC, later clarified that the new tariff regime would not take effect until April 1, 2020. This was to allow NERC sufficient time to consult all the interest groups, following the misgivings by many Nigerians.
According to NERC, the wide metering gap in the Nigerian Electricity supply industry is currently at about 60 per cent. This is a major impediment to both an immediate tariff review and revenue protection for Discos.
NERC, said that customers of the 11 Discos are willing to pay appropriate rates for services rendered by the Discos. But, this willingness is on the condition of guaranteed hours of supply, quality of power and adequate metering.
NERC, said the December 2019 Multi Year Tarrif Order 2015 and Minimum Remittance Order for 2020 would remain in force until June 30, 2020. Until then will a new minor review order be issued by the commission.
The federal government of Nigeria shall provide tariff support pending the adjustment in tariffs. However, the support would be within the context of funding that is available under the Power Sector Recovery Programme Financing Plan. NERC, said the the revenue recovery and financial sustainability plans by Disco should be submitted no latter than April 21, 2020.
NLC Is Displeased.
The Nigerian Labour Congress (NLC), condemned the plan to increase electricity tariff by NERC. NLC president, Ayuba Wabba, noted that the commission condemns any act to inflict further pains on Nigeria during this period.
Ayuba, noted that the leaders of NLC’s affliate union were united in rejecting the planned increase in electricity tariff. He said the tariff increase is an insensitivity to Nigerians who are currently dealing with the Covid-19 crisis in the country.