Nigeria:Electricity Tariff Hike Suspension Extended By 7 Days

  • 14 October 2020 / News / 148 / Emerging Africa

Nigeria:Electricity Tariff Hike Suspension Extended By 7 Days

The suspension of the September 1 electricity tariff hike has been extended by seven days until October 18, 2020.

A work plan jointly adopted by the Federal Government and members of the organised labour late Sunday night, indicates that, from next Monday, the tariff hike will continue but with a reduction by about 10 per cent across customer categories A to C that were earlier affected.

The power Distribution Companies (DisCos) had hiked the electricity tariff by about 100% on September 1, 2020, after the Nigerian Electricity Regulatory Commission (NERC) approved that.

However, the customers including labour opposed this with planned protest leading to the Federal Government directing a two week suspension which elapsed last Sunday.

The document sighted by our reporter indicates that the one week extension was to ensure that some resolutions were implemented before continuing with the tariff hike.

One of such resolutions is that NERC will immediately create strategies to protect the salary of electricity workers.

Based on the Value Added Tax (VAT) generated in the electricity market, NERC will compute a 10% cut in the suspended Service Base Tariff (SBT) for Band A customers (those who have 20 hours and above daily power supply), 10.5% reduction for Band B (16 to 20 hours) and 31% reduction for Band C (12 to 16 hours) customers. This computation will form the basis of the new tariff from next Monday.

The Federal Ministry of Power will urgently work with NERC, CBN, the Nigerian Electricity Management Services Agency, NEMSA, and the DisCos to quickly deploy at least 1 million meters to customers from Monday till December 2020 while the DisCos are compelled to meet the 6m target period.

The document signed by President, Nigeria Labour Congress, Ayuba Wabba; President, Trade Union Congress, Quadri Olaleye; Labour Minister, Chris Ngige and Secretary to the Government of the Federation, Boss Mustapha, created two ad-hoc technical committees.

The first co-opted the GMD of NNPC, Mele Kyari to review pricing of gas to power; NEMSA’s MD, Peter Ewesor is part of the second committee to immediately implement the 1m metering, all from October 12 to December 12, 2020.