HighlightTop StoryTrending Story

New Year electricity tariff raise: FG recants, suspends implementation after public outcry

270

 

After denying a raise in electricity tariff, the Federal Goverment has ordered stop on the tariff by the  Nigerian Electricity Regulatory Commission (NERC) with immediate effect.

The government said all actions on the new tariff which it referred to as bi-annual adjustment should be suspended until the joint ad-hoc committee of labour and government concludes its work until January end.

The Minister of Power, Mr Sale Mamman, gave the directive in a statement on Thursday in Abuja obtained by Persecondnews.

Persecondnews recalls that NERC had on January 4 issued a circular announcing the planned bi-annual “minor” review of electricity tariff across all bands between N2 per kWh and N4 per kWh.

“The public is aware that FGN and the Labour Centers have been engaged in positive discussions about the electricity sector through a joint ad-hoc committee led by the Minister of State for Labour and Productivity and Co-Chaired by the Minister of State for Power.

“Great progress has been made in these deliberations which are set to be concluded at the end of January 2021.

“Some of the achievements of this deliberation with Labour are the accelerated rollout of the National Mass Metering Plan, clampdowns 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 the creative use of taxes).

“It should be clear to all that the regulator must be allowed to perform its function without undue interference. The role of the Government is not to set tariffs, it is to provide policy guidance and an enabling environment for the regulator to protect consumers and for investors to engage directly with consumers.

“Bi-Annual Minor reviews to adjust factors such as inflation are part of the process for a sustainable and investable NESI.

“To promote a constructive conclusion of the dialogue with the Labour Centers (through the Joint Ad-Hoc Committee), I have directed NERC to forestall the implementation of the duly performed minor review (which adjusted tariffs between N2 per kWh and N4 per kWh) until the conclusion of the Joint Ad Hoc Committee’s work at the end of January 2021.

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

According to him, the information by NERC was “misinterpreted” by the public and that there was need for the government to speak up and ensure sustainable growth in the electricity market.

The minister also said: “On the contrary, @NigeriaGov continues to fully subsidise 55% of on-grid consumers in bands D and E and maintain the life line 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. These measures are all aimed at cushioning the effects of the pandemic while providing more targeted interventions for citizens.

“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.”

Leave a comment

Related Articles

With extant appeal, Rivers Govt.’ll be given its monthly federal allocation – FG

The Office of the Accountant-General of the Federation has reacted to the...

FG urged to promote national unity, social cohesion using community-based events, initiatives

The Federal Government has been urged to take a more active role...

Carjacking in FCT: Police recover Land Cruiser Prado after high-speed hot chase

In a swift response to a distress call, the Federal Capital Territory...

Just in: Abuja Court remands 109 alleged foreign hackers in prison

No fewer than 109 alleged foreign hackers, including females who attempted to...

Lagos, Abuja airports receive full NCAA certification

Murtala Muhammed International Airport (MMIA), Lagos, and the Nnamdi Azikiwe International Airport...

Day 3 of African Military Games: Nigerian Armed Forces Shine, Win 17 Medals

The Nigerian Armed Forces have made a remarkable impact at the ongoing...

Eight secondary school boys seize, gang-rape 14-year-old schoolgirl in Ogun

A 14-year-old schoolgirl in the Ijebu-Mushin area of Ogun State has been...

FG raises N346bln at Nov. 2024 bond auction, reflecting strong investor interest

The Federal Government has successfully raised N346.155 billion at its November 2024...

Breaking: Supreme Court Nullifies National Lottery Act

The Supreme Court on Friday nullified the National Lottery Act 2005 enacted...

NNPC Ltd. hosts NSC boss, pledges support for revitalization of Nigerian football

In a significant move to boost Nigerian football, the Nigerian National Petroleum...

Nigerian youths essential to repositioning Africa, says VP Shettima

Vice President Kashim Shettima has reaffirmed the federal government’s commitment to youth...

Just in: Simon Ekpa ‘ll be extradited to Nigeria to face charges – Defence Headquarters

The Nigerian Defence Headquarters, Abuja, has announced plans to extradite Simon Ekpa,...

NPA’s CEO Dantsoho Makes History as First Nigerian Chairman of PMAWCA

In a groundbreaking achievement, Dr. Abubakar Dantsoho, Managing Director of the Nigerian...

Just in: Senate confirms Omolola Oloworaran as DG PENCOM

The Senate on Thursday confirmed the nomination of Omolola Oloworaran for appointment...

Save for rainy day, Federal Accountant General urges state govts, emphasizes transparency, accountability

In a bid to ensure financial stability during adverse situations and economic...

Just in: Senate approves Tinubu’s $2.2 bln loan request

The Senate on Thursday approved President Bola Tinubu’s loan request of $2.2...

Just in: Reps reject bill for six-year single tenure for president, governors

The House of Representatives rejected a constitutional amendment bill on Thursday seeking...

Just in: Simon Ekpa, four others arrested in Finland over terror-related activities

Finnish-Nigerian separatist agitator, Simon Ekpa, and four others have been arrested in...

Sacked UNIZIK VC Odoh to Tinubu: You can’t fire me through press release

Sacked Vice-Chancellor of Nnamdi Azikiwe University (UNIZIK), in Awka, Anambra State, Prof....

UBA to empower MSME’s with wealth management strategies at its ‘Built to Last’ series

As part of its commitment to deepen the growth and sustainability of...