As part of the Federal Government efforts to ameliorate the challenges occasioned by the COVID–19 pandemic, the Nigerian Electricity Regulatory Commission has issued an Order that included a 3-month delay in the implementation of tariff measures.
Minister of Power Engineer Sale Mamman made this known in a statement on Tuesday.
The 3-month delay in the implementation of tariff measures is consistent with President Muhammadu Buhari’s announcement on March 29th granting a moratorium for certain Federal Government funded facilities to the Nigerian Public.
There will be no tariff action in APRIL. Thereafter, tariffs will only be raised as the Distribution Companies (DISCOs) improve quality of supply, meter consumers and agree with consumers on rates. DISCOs that fail to improve will be sanctioned. This is based on the outcome of the public hearings on tariffs.
The Ministry is supportive of a “service reflective” tariff system which is more equitable and will encourage investment in the sector. The Ministry will work with NERC to ensure that improvements happen in the entire DISCO network and estimated billing is capped per NERC Order 197/2020. This will eliminate arbitrary billing that Nigerians have raised issues with.
We are also implementing other key emergency measures to support the NESI (Nigerian Electricity Supply Industry). We are working with the CBN to ensure payments to the generators and gas suppliers through the Payment Assurance Facility (PAF) are expedited to support power supply. TCN is also creating emergency measures to ensure staff will be available to monitor the grid and perform technical interventions.
These changes and emergency measures will have an impact on Government finances. The Power Sector Recovery (PSRP) Financing Plan is being updated to reflect the changes. The Financing Plan will help support ongoing discussions with the World Bank on financial support for the sector and the transition away from tariff support as Government optimises its resources.
