Electricity Tariff Hike:NERC Shelves Increment Plans,Reduces Tariff

The NERC Shelves Electricity Tariff Hike in the Face of Pressures from Stakeholders

May 8, 2024 - 20:05
 0  37
Electricity Tariff Hike:NERC Shelves Increment Plans,Reduces Tariff

Electricity Tariff Hike:NERC Bows to Pressure, Announces Tariff Reduction 

The Nigerian Electricity Regulatory Commission (NERC) has announced a new reduced tariff regime for customers effective from May 2024.

According to the Commission, the decision comes after a thorough review of the macroeconomic parameters and exchange rate appreciations.

The reduced tariff order was contained in a statement signed by the NERV management.

It would be recalled that organized labour, consisting the Nigeria Labour Congress(NLC) and Trade Union Congress(TUC) had threatened to shut down their operations in the country should the federal government insist on the tariff increment which was earlier announced.

Open Television reports that the federal government had earlier insisted that "there was no going back" on the increased electricity tariff, stating that the burden of electricity subsidy was too much for the government to bear.

The revised tariff order, which affects all eleven electricity distribution companies in the country, will lower the end-user tariffs for Band “A” customers from NGN225/kWh to NGN206.8/kWh. This change is expected to provide some relief to consumers who have been grappling with high energy costs.

Open Television gathered that following the latest order by NERC, the electricity distribution companies, Abuja, Ikeja, and Ibadan Electricity Distribution Companies, among others, have begun to reduce the tariff in line with the new directive.

By this development, the NERC has demonstrated its commitment to maintaining a balanced regulatory millieu that balances the interests of the consumers with the sustainability of the electricity supply industry. 

The new tariff order is a reflection of the NERC’s commitment to its tariff methodology and its responsiveness to changes in the economic landscape. It is anticipated that this move will be well-received by the public and contribute positively to the Nigerian economy.

The statement reads: “Pursuant to the tariff methodology adopted by the Nigerian Electricity Regulatory Commission, a revised tariff order covering the month of May 2024 has been issued by the Commission to the eleven (11) electricity distribution companies.

“The Commission has considered changes in the macroeconomic parameters over the preceding month of April 2024 and especially the appreciation of exchange rates – consequently, the Commission has approved a downward review of end-user tariffs for Band “A” customers from NGN225/kWh to NGN206.8/kWh.

“The Commission reaffirms its commitment to providing a balanced and effective regulatory regime serving the needs of the Nigerian Electricity Supply Industry.”

Electricity consumers across the country are therefore expect to visit the official website of the Commission for further information and enlightenment while the Commission also encourage customers to visit their local electricity distribution companies.

What's Your Reaction?