Electricity Tarrif Goes Up Today Despite Continued Blackout

Beginning from today, electricity consumers in Nigeria will have to pay more, as the Federal Government approves a new tariff structure.

The new tariff will not, however, affect electricity consumers in residential houses, up till after six months, when power supply is expected to have improved nationwide.

Mr Sam Amadi, chairman of Nigerian Electricity Regulatory Commission (NERC), disclosed this in Abuja, when he signed a N213 billion memorandum of understanding (MOU) with the chief executives of Deposit Money Banks (DMBs) and the Central Bank of Nigeria (CBN) .

The NERC boss said “while we ensure that the tariff is cost reflective, it will not constitute a burden on consumers immediately.

“For the avoidance of doubt, there will be no increase for residential consumers for, at least, six months until we begin to see improvement.

“We expect that with more gas coming to the power plant because of these facilities and other interventions, in the next two, three months, there will be increase in capacity.

“There will be more reliability and the metering plan that is ongoing, we will be able to ensure that consumers will be much more comfortable.

“We will approve the tariff by tomorrow (today) which is already well known to the Central Bank of Nigeria and the transaction advisers, as well as the participants from the deposit money banks. That tariff is guaranteed. It is going to come into effect by tomorrow (today),” he said.

Speaking in the same vein, the CBN Governor, Mr Godwin Emefiele, recalled that in a meeting in Lagos, the issue of tariff was critically considered and it was decided that it would not weigh down the pockets of Nigerians.

“So, what we are doing here today is to say that yes, we are now at the point where the Nigerian Deposit Money Banks, as well as the Central Bank of Nigeria (CBN) are now ready to work together to clear the legacy debts.

“As we clear these debts, the entire chain becomes clear, the business becomes commercially viable for existing investors to continue to do their business and for new investors, who are interested to come into this business and then boost our power and gas sectors in Nigeria,” he noted.