joint ad-hoc Committee concludes their discussion by the end of January.The directive was contained in a statement by the Minister of Power,
Sale Mamman, on Thursday.
NERC had on Monday, issued a circular regarding the planned bi-annual
minor review of electricity tariff across all bands between N2 per kWh
and N4 per kWh.
The minister, in the statement, explained that the order is to ensure
that a constructive conclusion is reached between the labour unions and
the Federal Government.
“The public is aware that FGN 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,” Mamman
said. “Great progress has been made in these deliberations which are set
to be concluded at the end of January 2021.
“Some of the achievements of this deliberation with Labour are the
accelerated rollout of the National Mass Metering Plan, clampdowns on
estimated billing, improved monitoring of the Service-Based Tariff, and
the reduction in tariff rates for bands A to C in October 2020 (that
were funded by the creative use of taxes).
“It should be clear to all that the regulator must be allowed to perform
its function without undue interference. The role of the Government is
not to set tariffs, it is to provide policy guidance and an enabling
environment for the regulator to protect consumers and for investors to
engage directly with consumers. Bi-Annual Minor reviews to adjust
factors such as inflation are part of the process for a sustainable and
investable NESI.
“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 minister stressed that the information by NERC was misinterpreted by
the general public and there was a need for the government to speak up
and ensure sustainable growth in the electricity market.
“On the contrary, @NigeriaGov continues to fully subsidise 55% of
on-grid consumers in bands D and E and maintain the life line tariff for
the poor and underprivileged,” Mamman said.
“Those citizens have experienced no changes to tariff rates from what
they have paid historically (aside from the recent minor inflation and
forex adjustment). Partial subsidies were also applied for bands A, B
and C in October 2020. These measures are all aimed at cushioning the
effects of the pandemic while providing more targeted interventions for
citizens.
“The Administration is committed to creating a sustainable, growing and
rules based electricity market for the benefit of all Nigerians.
“The Administration and the Ministry of Power will also continue to
devise means to provide support for vulnerable Nigerians while ensuring
we have a sustainable NESI.”