Abuja – Energy Minister Sale Mamman said yesterday that there would be no major increase in the electricity tariff, but did not completely reject the statement issued by the Nigerian Agency Electricity Regulatory Authority (NERC), giving Nigerians a 21-day feedback period. before the July increase.
In a statement he personally signed in Abuja, the minister said Nigerians should expect increased efficiency in the sector which would ultimately lead to lower tariffs while dealing with currency and trade issues. ‘inflation.
Making the announcement during the week, NERC explained that the latest advisory was issued to inform the general public and industry stakeholders of the commission’s intention to conclude the extraordinary process of reviewing the prices for the 11 distribution companies (Discos).
In addition, NERC said it is also set to begin the July 2021 minor review processes of the MYTO (2020) to take into account changes in inflation, exchange rates, gas prices, available production capacity and capital expenditure.
But Mamman explained that the order issued by NERC on April 26, 2021 titled “Notice of Minor and Extraordinary Tariff Revision of Electric Transmission and Distribution Companies” was routine.
He said the review planned by NERC was in line with section 76 of the Electric Power Sector Reform Act 2005 (EPSRA).
According to him, the tariff for customers of service bands D and E, served less than 12 hours on average of supply per day over a period of one month, remains subsidized in accordance with the political orientation of the federal government.
The minister said section 76 of the law provides clear guidelines for the periodic review of tariffs based on market data and licensee submissions.
He said the guidelines include the provision for the commission to notify tariff-related activities in the official journal and in one or more newspapers.
“The MYTO in accordance with NERC regulations obtains contributions from market operators every six months to perform minor reviews and a major review is required every five years.
“So, like in January, a minor review will take place in June. Since the schedule for the extraordinary review has also passed, a review will take place for review in January 2022,” the statement said.
Mamman said the Buhari administration was sticking to resolutions passed by the Joint Technical Committee on Electricity Tariffs which he said recommended that NERC conduct an extraordinary review of MYTO and further revise the factors and align them. on current changing realities.
“The reason this recommendation was made by the committee was to ensure that efficiencies could be derived from an extraordinary review to further reduce tariffs,” Mamman said.
He added that the government was committed to increasing the supply of energy to the network by rapidly developing infrastructure through the various facilities in the sector, either to distribution companies (Discos) under strict conditions, or to the distribution company. Nigeria Transport (TCN).
“In addition, the National Mass Metering Program (NMMP) is on track to reduce losses. To date, more than 500,000 meters have been delivered to Discos in phase 0 of the program in five months. This exceeds the progress made for the entire Meter Service Provider (MAP). We will eliminate the counting gap for the life of the administration, ”the federal government said.
Mamman said the current administration is aware of the challenges Nigerians face, which is why he says the government has continued to subsidize D and E band consumers at pre-September 2020 tariffs, i.e. 55% of customers connected to the network.