NERC Awaits Tinubu’s Approval For New Electricity Tariff Plan

The Nigerian Electricity Regulatory Commission (NERC) is awaiting the go-ahead from President Bola Tinubu to announce a new electricity tariff regime.

The adjustment, expected to result in an increase, is part of the twice-yearly review of the Multi-Year Tariff Order (MYTO).

This review comes on the heels of the devaluation of the Naira, Nigeria’s currency.

The source revealed that “Everything is ready. By Friday this week, we will know if this increase will happen on July 1 or August 1, as some people have suggested. The truth is that the increase will happen, if not the government will have to pay for the shortfall.”

A meeting involving the NERC, operators, and consumers is planned for the coming week, where discussions will be held about the implications of the tariff hike.

President Tinubu’s Special Adviser on Energy, Olu Verheijen, is expected to lead the government’s decision on the tariff review and other reforms in the sector.

Meanwhile, the Electricity Distribution Company (DisCos) believes that the tariff increase will encourage investment and improve power supply.

Similarly, the Manufacturers Association of Nigeria (MAN) anticipates that the new tariff will enable better implementation of the nation’s Electricity Act.

MAN stated, “As an advocacy Association, MAN has always pushed for the need to charge cost-reflective electricity tariffs to avoid extortion of our members. Fortunately, it is of great delight that this new Act fits like a glove as it will help actualize a cost–reflective tariff considering the healthy price competition it will bring between the states and private investors.”

They recommended more investment into the expansion of critical power grid infrastructure and network improvements to ensure efficient service delivery and customer satisfaction.

The President of Nigeria Consumer Protection Network, Mr Kunle Olubiyo in a statement said, “Government should address matters relating to domestic gas obligation, appropriate gas pricing and gas to the domestic market should be sold in local currency (Naira) for use by gas to power generation power plants.

“Government should provide tax incentives, fiscal and non-fiscal incentives and access to long-term low-interest single digits credit facilities to indigenous meters assembling plants/local meters manufacturers in order to strengthen their production capacity.

“End users of electricity in Nigeria should be given the opportunity to buy pre-paid meters off the shelves. Conversion of the post-paid meters used by maximum demand metered customers who are bulk users into pre-paid maximum demand meters in order to enhance energy accountability and customer-centric, customers’ satisfaction & value for money.”