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Electricity Tariff Increase, NERC says it was well Thought Out

Electricity Tariff Increase, NERC says it was well Thought Out

Prof. James Momoh of NERC

The Nigerian Electricity Regulatory Commission (NERC) says the plan to increase tariff was announced after proper consultation with Electricity Distribution Companies (DisCos) and stakeholders in the sector.

The Chairman of NERC, Prof. James Momoh, disclosed this to journalists at the assumption of office for the new Minister of Power, Sale Mamman, in Abuja, yesterday (August 22).

NERC on its website said it has 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 January 1, 2016, to December 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 January 1, 2020.’’

According to Momoh, the planned increase in tariff has been well defined through careful thinking and consultation with the DiScos and other stakeholders

He added that it is the right time to do it because there are metres out there that are going to reduce the estimated bill.

Momoh noted that the step is imperative so that everybody can control how much power they use and how much they pay. “So, I think we are in the right direction,” he affirmed.

“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.

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He said that NERC has weighed all the resistance that could come up from the masses that is why it was open to discussion.

The NERC boss also noted that legal action will be taken if quality services are not provided. “if your metre doesn’t read then you won’t be paying. If you have no metres, there is going to be a cap on how much you should pay”. He noted.

He added that NERC has collected enough data from all over the country and are listening to consumers, manufacturers and whoever wants to talk about pricing issues.

 

 

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