Crisis Looms As New Electricity Tarrif Commences Today

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 mo. 

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.