Suspension of the new electricity tariff has been extended by one week.
Chairman, Nigeria Electricity Regulatory Commission (NERC), Prof. James Momoh, announced this when the Adhoc Technical Committee on Electricity Tariff submitted its interim report at a reconvene bilateral meeting between Federal Government and Organised Labour on Monday in Abuja.
The committee, chaired by Minister of State for Labour and Employment, Festus Keyamo, ought to examine the justifications for the new policy in view of the need for the validation of the basis for the new cost-reflective tariff. Hence, a decision was reached that the electricity tariff should be reverted for two weeks.
However, on Monday, Momoh said the extension by an additional one week was to enable the committee review and work out the modalities for the implementation of the agreement reached on the electricity tariffs structure.
Reading a resolution reached between the Federal Government, Organised Labour and the Ad Hoc Technical Committee on Electricity Tariff, Sen. Chris Ngige, Minister of Labour and Employment, said “Using of the Nigerian Electricity Supply Industry (NESI) VAT proceeds to provide relief in electricity tariff.
“This is to leverage on the VAT from the NESI, the increases experienced by customers due to the transition to the Service-Based Tariff will be reduced. That is Band A – 10 per cert reduction, Band B – 10.5 per cert reduction and Band C – 31 reduction.”
He also said the resolutions adopted would be implemented by all stakeholders within the week by Sunday, Oct. 18.
“The Federal Government committed to provide six million meters and NERC is expected to compel the DISCOs to meet the metering needs of the customers.
“On the issue of mandatory refund for any overbilling during system transition by the DISCOs that NERC should implement immediately within October.
“While on the freezing of customer band migration during the interim period that the revised NERC order will include specific guidelines on freezing band migration.”
It was adopted that for the distribution of the first one million meters, the Ministry of Power was to liaise with Central Bank of Nigeria(CBN), Nigerian Electricity Regulatory Commission (NERC) and Nigerian Electricity Management Services Agency (NEMSA).
