Electricity: NERC faults NLC’s claim on tariff hike

Nigerian Electricity Regulatory Commission (NERC) on Monday denied report of an increase in electricity tariff across the country, contrary to claims made by the President of Nigerian Labour Congress, Abdulwaheed Umar.

NERC Chairman, Dr. Sam Amadi explained in Abuja that the marginal increase in the fixed charge on R2 customers was part of the mechanism put in place in the Multi Year Tariff Order (MYTO II) which came into effect in June last year.

Amadi however acknowledged that there have been two minor adjustments on the tariff order in the past months.

According to him, “the two minor reviews conducted by NERC did not result in any increase of tariff because the indices stated above and the fundamentals of MYTO, as shown in the methodology and the financial model available published in full on website have not significantly changed.

“It must be made clear that for residential customers who use either single-phase meters or three-phase meter (R2), the fixed charge approved under MYTO is N500 for 2012 and N700 for 2013. Accordingly, on June 1, 2013, their fixed charge changed from N500 to N700 as prescribed in the MYTO. This happened without any further action from the commission”.

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He reiterated the commitment of the commission to protect both the interest of the consumers and investors in the sector, insisting that it was in the interest of the consumers to maintain fair tariff that sustains investment into the sector.

“As a regulator, we understand that the basis for any sustainable improvement in the network is that we can attract investment to increase the generation capacity, transmission and distribution network.

“The reality, which we all know, is that without tariffs that cover the prudent costs of producing and supplying electricity in the country there will be no such investment.

“The ultimate need of the consumers of electricity in Nigeria is that they have access to stable electricity. The objective of the tariff review in 2012 was to ensure cost recovery as a way of guaranteeing stable electricity in the nearest”, he added.

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