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Suspension Of New Electricity Tariff Extended

By Glam and Essence

The Federal Government has extended the suspension of the new electricity tariff by one week.
This was announced by Prof. James Momoh, Chairman, Nigeria Electricity Regulatory Commission (NERC),after the ad hoc Technical Committee on Electricity Tariff submitted its interim report at a reconvene bilateral meeting between Federal Government and Organised Labour on Monday in Abuja.
The new tariff was earlier suspended for two weeks and ended at midnight on Oct. 11, when the organized labour suspended the planned industrial action over agitation on the hike in electricity tariff on Sept. 28.
It would also be recalled that the committee which was Chaired by Mr. Festus Keyamo, Minister of State for Labour is to examine the justifications for the new policy in view of the need for the validation of the basis for the new cost-reflective tariff.
It was also agreed that while the committee carries the justification,that electricity tariff should be reduced for two weeks.
Prof.Momoh said the one-week extension of the new tariff was to enable the committee to review and work out modalities for the implementation of the agreement reached on the electricity tariffs structure.
Sen. Chris Ngige, Minister of Labour and Employment, while reading a resolution reached between the Federal Government, Organised Labour and the Ad Hoc Technical Committee on Electricity Tariff said that adoption of the work plan for effecting the resolutions has been reached,with a move by all stakeholders to implement it within the week by Sunday, Oct. 18.
According to Ngige,
“Using the Nigerian Electricity Supply Industry (NESI) VAT proceeds to provide relief in electricity tariff. This is to leverage on the VAT from the NESI, the increases experienced by customers due to the transition to the Service-Based Tariff will be reduced.
That is Band A – 10 percent reduction, Band B – 10.5 percent reduction and Band C – 31 reductions,” .
He said spoke on the plans for acceleration of the National Mass Metering Programme (NMMP),saying
the distribution of the first one million meters will commence soon,after the Ministry of Power liaise with the Central Bank of Nigeria(CBN), Nigerian Electricity Regulatory Commission (NERC), and Nigerian Electricity Management Services Agency (NEMSA).
He added that the accelerate rollout of meters is targeted to start October 12 to December,2020.

The minister explained further that it was agreed at the agreed that it would work towards bridging the metering gap.
Some of the resolution adopted includes: -Organised Labour would work with the government to improve and ramp up local production capacity.
-NERC should ensure that the personnel costs of electricity workers should be placed on the first-line charge on the Primary Collection Account,a process that would commence from Monday, Oct. 12.

  • Immediate refund for any overbilling during system transition by the DISCOs by NERC within October.
  • On the freezing of customer band migration during the interim period that the revised NERC order will include specific guidelines on freezing band migration
    -That Phase two for the extensive review of key sector reforms include that the ad hoc committee would work from Oct. 12 to Dec. 12.

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