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Electricity commission debunks 50% tariff increment, indicates N2 adjustment on categories

By Monsurudeen Olowoopejo

The Nigerian Electricity Regulatory Commission (NERC) has debunked reports of a 50 percent increment in electricity tariff charged by distribution companies, just as it announced an adjustment in kilowatt-hour from NGN2.00 to NGN4.00.

NERC added that the adjustment in kilowatt-hour was approved after a thorough assessment of the country’s economy to reflect the partial impact of inflation and movement in forex.

Through a statement released on Tuesday, the commission stated that there was no approval from the chairman, Sanusi Garba, last year and that the reports of an increment were not true, except for the adjustment made in accordance with Electricity Power Sector Reform (EPSR) Act.

It noted that the act allowed biannual minor tariff review for customers on service bands A, B, C, D, and E from NGN2.00 to NGN4.00 per kWhr to reflect the current status of the economy.

NERC argued that tariff for customers on service bands D and E (customers being served less than an average of 12hrs of supply per day over a period of one month) remains frozen and subsidized in line with the policy direction of the apex government.

The statement reads: “The attention of the Commission has been drawn to publications in the print and electronic media misinforming electricity consumers that the Commission has approved a 50% increase in electricity tariffs.

“The Commission hereby states unequivocally that no approval has been granted for a 50 percent tariff increase in the Tariff Order for electricity distribution companies which took effect on January 1, 2021.

“On the contrary, the tariff for customers on service bands D & E (customers being served less than an average of 12hrs of supply per day over a period of one month) remains frozen and subsidized in line with the policy direction of the FG.

“In compliance with the provisions of the Electricity Power Sector Reform (EPSR) Act and the nation’s tariff methodology for biannual minor review, the rates for service bands A, B, C, D, and E have been adjusted by NGN2.00 to NGN4.00 per kWhr to reflect the partial impact of inflation & movement in forex.

“In the light of strong public interest on this matter, the media is hereby requested to retract their earlier publications misinforming electricity consumers nationwide about a purported 50 percent increase in electricity tariffs.

“The Commission remains committed to protecting electricity consumers from failure to deliver on committed service levels under the service-based tariff regime”.

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