FG directs the change in the electricity tariff adjustment
Energy Minister Saleh Mamman has instructed the Nigeria Electricity Regulatory Commission (NERC) to inform all Electricity Distribution Companies (DISCO) of the restoration of tariffs that were in effect in December 2020.
Mr Aaron Artimas, Senior Special Adviser to the Minister of Energy for Media and Communications, said this in a statement in Abuja on Thursday.
He said that the abolition of the old tariff should contribute to the constructive completion of the dialogue with labor centers (through a special joint committee).
“I instructed NERC to inform all DISCOs that they must return to the tariffs that were in effect in December 2020 by the end of January 2021, when the work of the GOS committee and work will be completed.
“This will make it possible to implement the results of all decisions of the committee,” he said.
The minister said against the background of the message that the electricity tariff had been increased by 50 percent.
“I want to state that these reports are inaccurate and false. It is unfortunate that these reports have confused the public.
In contrast, the government continues to fully subsidize 55 percent of the network’s D- and E-bands and maintain a vital tariff for the poor and disadvantaged.
“These citizens have not experienced any changes in tariff rates from what they have paid historically, with the exception of the recent drop in inflation and exchange rate adjustments. Partial subsidies for Bands A, B and C were also requested in October 2020, ”he said.
Mamman said all of these measures were aimed at mitigating the effects of the pandemic while providing more targeted interventions for citizens. He said the public was aware that the federal government and labor centers were involved in positive discussions on the electricity sector through a special joint committee.
He said the committee was chaired by Mr. Festus Keyamo, Minister of State for Labor and Productivity, co-chaired by Minister of State for Energy Goddi Jedi-Agba. Progress has been made in these discussions, he said, and is expected to end in late January.
“Some of the results of this discussion with Labor are the accelerated launch of the national mass measurement plan and restrictive measures on checking accounts.
“Improved service-based rate monitoring and rate reductions for bands A to C in October 2020 (funded through creative use of taxes),” he said.
The minister said that it should be clearly stated that the regulator should be able to carry out its functions without undue interference.
He said the government’s role is not to set tariffs, but to provide political leadership and an enabling environment for the regulator to protect consumers and for investors who can interact directly with consumers.
Taking into account factors such as inflation, small semi-annual reviews are part of the process of building Nigeria’s Sustainable and Investment Power Industry (NESI), he said.
He also said that the regulator deserves credit for complying with current regulations, taking extensive steps to minimize negative impact on end-user tariffs.
“The administration is committed to creating a sustainable, growing and rule-based electricity market for the benefit of all Nigerians.
“The Administration and Department of Energy will also continue to develop funds to support vulnerable Nigerians while ensuring a sustainable NESI,” he said.
Source: – TribuneOnline