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The Federal Government has directed the Nigerian Electricity Regulatory Commission to suspend the recently adjusted electricity tariff .

The Minister of Power , Sale Mamman , made this known in a statement .

In the statement , the minister said there was a committee working on the new electricity tariff regime and the committee should be allowed to complete its work before any development or adjustment .

Mamman directed NERC to suspend the recent increment until the committee concludes its work by end of January .

He said , “ The public is aware that the Federal Government and the Labour Centers have been engaged in positive discussions about the electricity sector through a joint ad – hoc Committee led by the Minister of State for Labour and Productivity and Co – Chaired by the Minister of State for Power . Great progress has been made in these deliberations which are set to be concluded at the end of January , 2021 .

“ To promote a constructive conclusion of the dialogue with the Labour Centers (through the Joint Ad – Hoc Committee ), I have directed NERC to forestall the implementation of the duly performed minor review (which adjusted tariffs between N2 per kWh and N4 per kWh ) until the conclusion of the Joint Ad Hoc Committee’ s work at the end of January 2021 .

“ This will allow for the outcome of all resolutions from the Committee to be implemented together . The Administration is committed to creating a sustainable, growing , and rules- based electricity market for the benefit of all Nigerians . ”

Punch

The Nigeria Labour Congress , says the Federal Government is sensitive to the plight of Nigerians by increasing the electricity tariff payable by power consumers across the country.

News had earlier reported that approval for the hike in tariff was given by the Nigerian Electricity Regulatory Commission , as the increase which varies , based on different consumer classes , took effect from January 1 , 2021 .

The regulatory agency blamed N2 to N4 adjustment in tariff on inflation and movement in foreign exchange rates .

Reacting , Deputy President , NLC , Joe Ajaero , said NERC disregarded the committee working on the new electricity tariff regime by the announcement on Tuesday .

Ajaero , who is also a member of the committee headed by the Minister of State for Labour and Employment, Festus Keyamo , said the committee was yet to submit its report before the NERC action .

The Labour leader spoke on Channels Television ’ s Sunrise Daily programme monitored by The PUNCH .

He said , “There was a tariff increase by November which is being contested . A committee was set up headed by Keyamo and some of us are serving in that committee . We have not even finished addressing that issue and that adjustment was unjust and wasn ’ t necessary . Now , somebody is issuing a statement that there was an adjustment and it was not an increase . No matter how they play with semantics , Nigerians are noticing a lot of differences in what they are doing .

“ 90 per cent of Nigerians receive less than 12 – hour electricity per day . All those issues of banding, band A, B, C, D, are all lies . Nigerians know more than this .

“ There is an agreement with the labour on all these issues , the committee has not even submitted their report and NERC behaves as if it is from the moon and insensitive to Nigerians . This is not acceptable . ”

The Nigerian Electricity Regulatory Commission , said it has not increased electricity tariff by 50 per cent.

The Commission , in a statement , said such increment was not contained in the tariff order for electricity distribution companies which took effect on January 1 , 2021 .

It said the tariff for customers being served less than an average of 12 hours of power supply per day over a period of one month remains frozen and subsidised in line with the policy direction of the Federal Government.

The statement partly read , “The attention of the Commission has been drawn to publications in the print and electronic media misinforming electricity consumers that the Commission has approved a 50 % increase in electricity tariffs .

“ The Commission hereby state unequivocally that no approval has been granted for a 50 % tariff increase in the Tariff Order for electricity distribution companies which took effect on January 1 , 2021 .

“ On the contrary , the tariff for customers on service bands D & E ( customers being served less than an average of 12 hrs of supply per day over a period of one month ) remains frozen and subsidised in line with the policy direction of the FG.

“ In compliance with the provisions of the EPSR Act and the nation’ s tariff methodology for biannual minor review , the rates for service bands A, B, C, D and E have been adjusted by NGN 2 . 00 to NGN 4 . 00 per kWhr to reflect the partial impact of inflation & movement in forex .

“ The Commission remains committed to protecting electricity consumers from failure to deliver on committed service levels under the service – based tariff regime. ”

Punch

The Federal Government has again increased the electricity tariff payable by power consumers across the country.

Approval for the hike in tariff was given by the Nigerian Electricity Regulatory Commission , as the increase which varies , based on different consumer classes , took effect from January 1 , 2021 .

The NERC announced the tariff hike in its December 2020 minor review of the Multi – Year Tariff Order and Minimum Remittance Order obtained by our correspondent in Abuja .

The tariff increase is taking effect just two months after the government through NERC implemented a hike in November 2020 , which saw widespread opposition .

The MYTO order containing the latest tariff hike , Order NERC / 225 /2020 , was signed by the new Chairman of NERC , Sanusi Garba , and it supersedes the previous Order NERC / 2028 /2020 .

Providing reasons for the latest tariff hike , the commission said it considered the 14 . 9 per cent inflation rate rise in November 2020 and foreign exchange of N379 . 4 /$ 1 as of December 29 , 2020 .

Others were available generation capacity , the United States inflation rate of 1 . 22 per cent and the Capital Expenditure of the power firms before the tariff was raised .

Findings showed that the revised Service – Based Tariff saw an increase in the rates payable by the various classes of electricity users unlike the one of November 2020 , that exempted low electricity consumers .

The commission also stated that the new tariff would be effective till June 2021 while a Cost Reflective Tariff would be activated from June to December 2021 .

Punch