FG reverses latest electricity tariff hike

The Federal Government has reversed the recent hike in electricity tariff.  The Minister of Power, Engr. Sale Mamman, directed the reversal of the new hike in electricity tariff till the end of January 2021.

He said that government will continue to dialogue with the organised labour before any further adjustment.

The minister said there was no approval for a 50 per cent increase in the tariff. He, however, said the Nigerian Electricity Regulatory Commission (NERC) only made some adjustments, which led to some level of increase in the tariff. He said: “To promote a constructive conclusion of the dialogue with the Labour Centres (through the Joint Ad-Hoc Committee), I have directed NERC to inform all DisCos (Distribution Companies) that they should revert to the tariffs that were applicable in December 2020 until the end of January 2021 (when the FGN/Labour committee work will be concluded).

According to him, this will allow for the outcome of all resolutions from the Committee to be implemented together.

The minister also said the government had continued to fully subsidise 55 per cent of the on-grid consumers in bands D and E (those with lower than 12 hour power supply) and maintain the lifeline tariff for the poor and underprivileged. “Those citizens have experienced no changes to tariff rates from what they have paid historically (aside from the recent minor inflation and forex adjustment). Partial subsidies were also applied for bands A, B and C in October 2020. These measures are all aimed at cushioning the effects of the pandemic while providing more targeted interventions for citizens,” he said.

Mamman also said the administration was committed to creating a sustainable, growing and rules-based electricity market for the benefit of all Nigerians. “The Administration and the Ministry of Power will also continue to devise means to provide support for vulnerable Nigerians while ensuring we have a sustainable Nigerian Electricity Supply Industry (NESI),” he said.

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