The Nigerian Electricity Regulatory Commission (NERC) has reversed plans to effect the transition to a cost-reflective tariff on April 1.
Recall that in its December 2019 Minor Review of Multi-Year Tariff Order 2015 and Minimum Remittance Order for the Year 2020, the NERC disclosed its plan of effecting a switch to cost-reflective tariff. The move was expected to lead to an increase in electricity tariff.
The Minister of Power, Mamman Sale has however disclosed that the Federal Government has agreed to delay the implementation of a new tariff plan in the Nigerian Power sector by 3 months. Sale disclosed that the decision was taken due to the Coronavirus pandemic and current economic reality of the Country.
The Federal Government has agreed to delay the implementation of a new tariff plan in the Nigerian Power sector by 3 months. This is in relation to the #COVID19 pandemic and current economic reality of the Country.
NERC directed DisCos to provide customers with smart meters.
A chunk of electricity consumers in Nigeria are still being billed through estimates, a system which breeds corruption and is open to manipulation.
“All Discos are hereby directed to, no later than 30 June 2020, provide smart meters of 11kv and 33kv feeders level with the capability of sending real time or near real time data to the Commission,” NERC wrote.
With electricity providers often complaining that they have been selling themselves short without making a profit, NERC said “the federal government of Nigeria shall provide tariff support during the transitional period of full revenue recovery ending on June 30, 2021 based on the under-recovery of the revenue requirement determined.”