How planned increase in electricity tariff was decided — NERC

How planned increase in electricity tariff was decided — NERC

Thursday, August 22, 2019 7:01 pm

Power installation

The Nigerian Electricity Regulatory Commission (NERC) said the planned increase in tariff was done through consultation with Electricity Distribution Companies (DisCos) and stakeholders in the sector.

Prof. John Momoh, Chairman of NERC, said this to newsmen on Thursday in Abuja during the assumption of office of the new Minister of Power, Mr Sale Mamman.

NERC on its website said it had determined and recognised the historical (2015-2018) tariff deficits pursuant to the objective of resolving the impairment of the financial records of DisCos arising as a consequence of the deficits.

“This order has taken into consideration the actual changes in relevant macroeconomic variables and available generation capacity in updating the operating MYTO 2015 Tariff Order for the period Jan. 1, 2016, to Dec. 31, 2018,

“In line with the provisions of the MYTO Methodology (Amended) projections were made for macroeconomic variables for the year 2019 and beyond based on best available information.

“The commission shall make necessary adjustments to reflect actual values at the time of the next minor review that will take effect on Jan. 1, 2020.’’

Momoh said that the planned increase in tariff was through careful thinking, consultation with the DiScos and other stakeholders

“We have discussed fully what we are about to do and it is the right time to do it because we have metres out there that are going to reduce the estimated bill.

“So that everybody knows that you can control how much power you use and how much you pay which is part of the order.

“So, I think we are in the right direction.

“But mind you we also divide the payment into different classes; if you read it carefully and of course enforce it as a rule; if you have any questions send it in writing,‘’ he said.

He said that NERC had looked at all the resistance that could come up adding that it was open to discussion.

”It is not that we are doing it as a law but this is an order and you read it; if you are concerned contact us.

The NERC boss said that there would be penalty for not producing quality service.

“If your metre doesn’t read then you won’t be paying.

“If you have no metres, there is going to be a capping on how much you should pay.

“So the issue is under consultation and in few days we will conclude the discussion; we spent Tuesday on franchising and having discussion on capping.

“We have collected enough data we have all over the country and we are listening to consumers, manufacturers and whoever wants to talk about pricing issue.

“Based on the input, we sat down and analysed and got a common ground – which project makes sense which we think it is fair to everybody, which you and I can live with.

“At the end of the discussion we will determine the final target for those who don’t have metres,‘’ he said.

“But more importantly I should talk as a regulator, a customer and also as an innovator.

“If you put in a very wrong fluorescent light or different appliances in the room, you are going to lose more energy.’’

The NERC boss said that there was the need to educate customers on the appliances they should use to be energy efficient adding that it was critical to use the right energy to avoid waste.

“You are going to be paying for those wasted energy, so we have to minimise loss at the customer end.

“We have to also minimize loss at the DISCO level in an attempt that they also feel more comfortable in getting more value for their investment,‘’ he added..

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