A new tariff structure for electricity in
Nigeria will kick off today. The new tariff
which has been approved by the Federal
Government will make Nigerians pay more for electricity use.
Most Nigerian homes and businesses still
depend on generators to power their
electricity needs
Daily Trust reports that consumers should
expect major rise by June 2015 when the
N213billion power stabilisation loan would
have been included in the tariff structure.
According to Daily Sun, the increase is
coming amidst complaints of poor power
supply by distribution companies despite the
privatisation of the PHCN successor firms.
The chairman of Nigerian Electricity
Regulatory Commission (NERC), Mr. Sam
Amadi disclosed the new tariff in Abuja,
when he signed a N213 billion memorandum
of understanding (MOU) with the chief
executives of Deposit Money Banks (DMBs)
and the Central Bank of Nigeria (CBN),
Nigerian Tribune reports.
Some rural areas in Nigeria are yet to be
connected to the national grid
Amadi said: “NERC will ensure that the
tariff is ready and by tomorrow (today), we
will approve the tariff which is already well
known to the CBN, the transaction advisers
as well as the participants in the deposit
management bank.
“That tariff is guaranteed and it is going to
come into effect tomorrow (today) and it
allows for full recovery and it allows that
there is no risk that is not going to be fully
covered in the transaction.”
He also said the new tariff “allows for full
recovery and it allows that there is no risk
that is not going to be fully covered in the
transaction.”
He continued, “while we ensure that the
tariff is cost reflective, it will not constitute
a burden on consumers immediately.
“For the avoidance of doubt, there will be no
increase for residential consumers for, at
least, six months until we begin to see
improvement.
“We expect that with more gas coming to the
power plant because of these facilities and
other interventions, in the next two, three
months, there will be increase in capacity.
“There will be more reliability and the
metering plan that is ongoing, we will be able
to ensure that consumers will be much more
comfortable.
“We will approve the tariff by tomorrow
(today) which is already well known to the
Central Bank of Nigeria and the transaction
advisers, as well as the participants from the
deposit money banks. That tariff is
guaranteed. It is going to come into effect
by tomorrow (today),” he concluded.
Nigeria’s power plants are poorly funded and managed
Just about a month ago, the Electricity
Distribution Company, EEDC, in Enugu State
was given seven days ultimatum by the Nigeria Labour Congress, NLC, in the South-East to recall the sacked unionists of the company.
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