• Aremu says spike indicates hard year for workers
The Nigerian Electricity Regulatory Commission (NERC) confirmed, yesterday, that some electricity consumers in the country would pay more for energy to reflect inflation trend and Foreign Exchange reality. That is what the Multi Year Tariff Order (MYTO) recommends for the sector. Although the MYTO for other distribution companies, apart from the Ibadan DisCo, was not released by NERC at the time of filing this report, consumer may need to get ready for increase in tariff from now to 2024.
There are also indications that the Federal Government would not subsidise any class of consumer by the end of this year as NERC planned to enforce 100 per cent remittance for all DisCos by the end of the year bringing to zero DisCos tariff shortfall, which stands at about 24, 521 for Ibadan DisCo.
•CBN, NERC intervention meet deadlock
Despite the intervention of Central Bank of Nigeria (CBN) and Nigerian Electricity Regulatory Commission (NERC) to address the liquidity crisis rocking Nigeria’s electricity market, the sector continues to struggle under heavy debt.
Being the revenue collectors in the market, NERC had, last year, set a minimum market remittance threshold payable by the 11 power distribution companies operating across the country.
NERC mandated the DisCos to make 100 per cent remittances to the Transmission Company of Nigeria (TCN)’s Market Operator (MO), repay loans to CBN and remit some percentage to Nigerian Bulk Electricity Trading Company (NBET) monthly.
•Tariff increases to continue till Discos cover costs, says NERC
Ndubuisi Francis, Chuks Okocha, James Emejo, Onyebuchi Ezigbo, Emmanuel Addeh in Abuja and Dike Onwuamaze and Peter Uzoho in Lagos
Analysts, the Organised Private Sector (OPS), labour and the Peoples Democratic Party (PDP) yesterday decried a review, by the federal government, in electricity tariffs, especially amidst the current economic challenges occasioned by the COVID-19 pandemic.
They faulted the timing of the tariff adjustment, considering the economic hardship and recession which have eroded the purchasing power of Nigerians.
The Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), the Lagos Chamber of Commerce and Industry (LCCI), the Nigeria Labour Congress (NLC), Trade Union Congress (TUC), a former Director General, Abuja Chamber of Commerce and Industry (ACCI), Dr. Chijioke Ekechukwu; Managing Director/Chief Executive, Credent Investment Managers Limited, Mr. Ibrahi
President of the Trade Union Congress, Quadri Olaleye
The Federal Government has again increased the electricity tariff payable by power consumers across the country.
Approval for the hike in tariff was given by the Nigerian Electricity Regulatory Commission, as the increase which varies, based on different consumer classes, took effect from January 1, 2021.
A few hours after the news of the tariff hike broke, the NERC issued a statement, denying a 50 per cent hike as had been reported in some circles.
The regulatory agency blamed N2 to N4 adjustment in tariff on inflation and movement in foreign exchange rates.
However, the Trade Union Congress issued a stern warning, asking the Federal Government to revert to old electricity tariff or face the consequences of its action.
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